Workers compensation insurers are increasingly turning to mobile device applications and other technology innovations in their bid to remain a force in the industry and serve their clients, Novarica determined in a new report.
Their hope, Novarica said, is that these high-tech bells and whistles will help them reduce losses and boost returns in what remains a highly competitive sector.
“A significant use of specialized components is to improve the productivity of loss control representatives and consultants, both via mobile device and collaborations via software solutions,” Novarica concluded in its report, dubbed “Business and Technology Trends: Workers’ Compensation.”
“Emerging technologies are allowing advanced insurers to encourage client behavior that will reduce and prevent loss,” Novarica said.
At the same time, Novarica said, workers compensation insurers are still relying on some familiar technological tools.
“Agent portals continue to be important for guiding producers as to carriers’ risk appetite and for ease of doing business generally,” Novarica said. “Replacing core systems to support new product development and improve the consistency and quality of underwriting decisions is also common. Insurers are investing in claims administration systems to improve operational effectiveness and the quality of the claims service, which is a key interaction with a policyholder.”
Beyond those elements, however, new technology and approaches are invading daily workers compensation underwriting routines. How is this happening? Here are some of Novarica’s major findings:
These workers compensation changes come as the combined ratio for private carrier workers compensation hit 101 in 2013, according to A.M. Best data cited by Novarica, versus 115 in 2011 and 108 in 2012. Favorable loss experience contributed to most of the gains, Novarica said.
Source: Novarica