2015 Innovation Awards: Liberty Mutual Insurance Co.Posted On: Mar. 1, 2015 12:00 AM CST
A dashboard added to Liberty Mutual Insurance Co.'s RiskTrac risk management information system allows workers compensation policyholders to use the tool as though it were a customized predictive model.
While Liberty Mutual has used RiskTrac since the 1980s to analyze its workers comp claims data, it rolled out the interactive dashboard last August to workers comp policyholders and customers of Liberty Mutual's third-party administrator, Helmsman Management Services L.L.C.
A risk manager's question is credited with prompting Liberty Mutual to set up the dashboard, a winner of the 2015 Business Insurance Innovation Awards.
The risk manager of a large “sophisticated” firm asked Helmsman whether the TPA could devise a predictive model to display results of the firm's unique comp claims data, rather than all of Liberty Mutual's claim information, Helmsman President Debbie Michel said.
“Her challenge to us was, "How do you make this real for me, and how do you make this valuable for me and my team?'” Ms. Michel said.
Ms. Michel said the result was a system that pinpoints workers comp claims that are at greatest risk of becoming high-cost claims.
In turn, risk managers who use the dashboard can decide on strategies to help mitigate escalating costs of flagged workers comp claims, such as medical interventions or claim settlement, said Heather McMinn, RiskTrac product manager for Liberty Mutual in Dover, New Hampshire.
“It presents ... a simplified look at their open workers comp claims, (and) it plots them so that they can easily see which of their open claims are most severe and those that have the highest potential severity to escalate. And it allows them the ability to drill in to find out which claims those are so ... they can bring resources to them quicker,” Ms. McMinn said.
The dashboard is available to all Liberty Mutual and Helmsman customers using RiskTrac, but Ms. Michel said the tool has been particularly useful for companies large enough to have a risk manager and significant workers comp claims volume. Though Liberty Mutual said it's too early to quantify savings that have resulted from the dashboard, customers have indicated that the tool has allowed them to better manage their workers comp claims and potentially reduce their costs, Ms. Michel said.
“It made the predictive model that we've got running through all the open claims every day personal to her business and allowed her the flexibility to focus in based on her organizational structure (and) the injury types they know to be a problem for their type of operations,” Ms. McMinn said of the unnamed client who sparked the dashboard idea.