Workers comp is a line of insurance that requires proactive management by agents. With its volatile rating system and relentless focus on accidents in the workplace, comp can go bad in a hurry. Agents that fail to see the trouble ahead are at great risk for losing the business.
Loss runs are essential reading for agents. They list all reported incidents by policy year, showing how much has been paid and how much as been set aside for future payments. This is the data that goes into calculating the experience modification. Savvy agents will review loss information during the first three months of the new policy year; any open claims need to be reviewed before the data for the next policy year is submitted, six months in from policy inception.
You’ve Read the Loss Run, Now what?
It’s one thing to read up-to-date loss runs, it’s quite another to take the specific actions necessary to manage the workers comp process. If claims are closed, there is nothing more to be done. If the loss run reveals claims that are open, steps need to be taken to ensure that there is an active strategy toward closure for every open claim. This requires a telephonic claims review involving the claims adjuster, the insured and the agent. Renaissance Alliance agents also have the option to include Jon Coppelman, the Renaissance Alliance workers comp specialist, who will help focus the claims discussion on optimal strategies for closure.
Armed with loss runs and the experience mod calculation sheet, Jon can project future mods. The combination of active claims reviews and mod projections helps insureds understand their comp performance and prepare for the future. Whether the mod is about to go up or down, your insureds will take comfort in knowing that claims are being properly managed and the experience rating is heading in the right direction.
The Renaissance Alliance value-added proposition for workers comp is a powerful tool for cementing the relationship between agents and their insureds. It can be just as effective with prospects.