Workers’ comp: Does the system do harm?

Winners of the Workers’ Comp Risk Management Award for Excellence ask tough questions to hatch holistic solutions. Nominate today!

“We all have an opportunity to really become more introspective” about the strengths and weaknesses of the workers’ compensation system, says Kimberly George with Sedgwick. (Photo: ALM Media archives)

Recent research into the international world of workers’ compensation caused Kimberly George to ask this tough question: Does our system do harm/?

George is the global head of innovation and product development for Sedgwick. She also co-hosts the interactive educational series Out Front Ideas with Mark Walls, vice president of communications and strategic analysis at Safety National. Both of them serve on the NU Property & Casualty Editorial Advisory Board and assist with the annual Workers’ Comp Risk Management Award for Excellence, for which nominations are being accepted through April 29, 2022.

The reflective approach

“This particular topic — Does our system do harm/? — came about as I started exploring international workers’ compensation programs, having spent time in Europe and Asia and Australia,” George said during a session at the 2021 Workers’ Compensation Educational Conference and Safety & Health Conference in December. “Those workers’ compensation systems spend quite a bit of time reflecting.”

It is only by asking tough questions, George added, that holistic solutions begin to emerge. It follows that the Out Front Ideas hosts gathered four heavy-hitters in the workers’ comp world to help them delve into the topic of whether or not the system functions well in the U.S.

Walls said the question of systemic harm created an opportunity to address inefficiencies, cut unnecessary costs and delays, and ultimately “improve to provide better outcomes for injured workers and employers.”

The panel discussion included Susan Shemanski from Adecco, one of three 2021 winners of the Workers’ Comp Risk Management Award for Excellence; Michele Adams, vice president of Risk Management Operations & Casualty Claims at Walmart; Max Koonce, chief claims officer at Sedgwick; and Florida Deputy Chief Judge of Compensation Claims David Langham.

The panelists agreed that the vast majority of workers’ comp claims “fly through the system,” with 80% to 90% being resolved in a year or less. The remaining 10% are composed of catastrophic claims and those for which it becomes more difficult to determine an equitable resolution. “I think our challenge is, we really need to spend some time evaluating what works well for the 90%, why it works well for them, and try to incorporate more of that into the 10% group,” Koonce said.

Adams added that a major hurdle for claims efficiency is the fact that workers’ comp is administered differently from one state to the next nationwide. “We really have to look at [this question] holistically,” she said. “What we have across the country is a very fragmented process.”

On the upside, she said, claims automation technology is enabling adjusters to spend more time thinking critically about problematic cases. “There’s so much more technology now” than in the past, she said.

Shemanski, who is Adecco’s vice president of Corporate Risk Management, said it’s important to avoid getting too bogged down in data regarding successful workers’ comp claims. She also advocated for getting workers speedy treatment to avoid disgruntled claimants and employers. “Get people the right treatment from the beginning so that they don’t become a long-term case,” she said.

Judge Langham agreed that it’s key to think of worker’s comp claims in terms of people as opposed to numbers or regulations. “I preach that all the time,” he said.

You can listen to the entire session on the Out Front Ideas website.

Nominate top workers’ comp programs today!

The Workers’ Comp Risk Management Award for Excellence recognizes those with outstanding loss control, safety and return-to-work programs. Up to three winners will receive:

The 2022 Workers’ Comp Risk Management Award for Excellence nomination period begins March 15, 2022 and runs through May 6, 2022.

Requirements

An entrant must be a risk manager or someone who works in a risk management department of a U.S. company or organization and responsible at least in part for the firm’s workers’ comp program. Carriers and brokers, while not directly eligible for the award, should encourage clients/policyholders to apply. Applicants should have a great story to share about innovating workplace safety and managing costs.

Prior recipients of the Excellence in Risk Management Award are not eligible.

The entrant must fill out all of the company profile information in the application below. (All proprietary information will be kept confidential, and is being collected for judging purposes only.)

There is no entry fee for this award program submission. Click here to submit a nomination today!

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