Self-Insured Loss Reduction

Learn how a
company reduced
its cost of workers'
claims by 26.7
percent annually.

The Problem

This supplier to the aviation industry grew quickly, largely through acquisition. And every time the company acquired another business, it also inherited another platform for handling workers’ compensation claims. Soon there were seven such platforms in use, along with multiple claims databases. The experts at Risk International were brought in to consolidate and manage the program, and bring badly needed continuity and consistency to the way the company handled claims for its 18,000 U.S. employees.

The Risk International Solution

Within nine months the Risk International team selected one preferred third party administrator (TPA), transitioned to that program, and moved all the data and claim files over to the new system. Risk International’s claims management team conducted an assessment, identified improvement opportunities, deployed a program that brought consistency to how injuries were managed, created a formal return-to-work program, identified one person at each site to be the workers’ compensation go-to person, and conducted years of training. Additionally, our claims team synergized the legal, HR, risk management and safety disciplines to reduce frequency and severity in the workers’ compensation program.

The Results: A 26.7 percent average reduction in the amount of annual claims payments over that five-year period for a total savings of $35 million dollars.

After five years, an independent actuary compared the client’s original program with the program designed and implemented by our team. And because the program was sustainable and fully integrated into the client’s culture, the savings continued beyond that five-year period.