As this supplier to the aviation industry continued to grow through acquisitions, its workers’ compensation system became more costly and difficult to manage for the 18,000+ employees it covered.
After years of continued growth and the addition of varying workers comp programs, the company struggled to efficiently maintain seven different workers comp platforms and multiple claims databases.
The Claims Services team of Risk International was brought in to consolidate and manage the workers’ comp program. Within the first nine months of its engagement, the team identified a single preferred third-party administrator (TPA) to handle the full program. All data and claims files were moved to a single system to create greater continuity and consistency of claims processing. The overall process was streamlined to reflect industry best practices and improve communications amongst the company’s legal, HR, risk management and safety teams. Risk International additionally identified designated go-to people at each site and provided training to ensure all claimants were treated equally and in accordance with the new formalized return-to-work policies.
An independent actuary who compared the company’s original program with the new streamlined workers’ comp program confirmed a 26.7% average reduction in the amount of annual claims payments over a five-year period for a collective savings of more than $35 million. The proven, sustainable program continues to generate additional savings for the company while facilitating claims management and returning employees to work in a more consistent manner.