During this session at the 2018 WCI conference, seasoned risk managers discuss their “lessons learned” in claims and risk management, and how to avoid unintended consequences to your broader risk financing and risk management programs.
The panel included:
David Stills, Vice President, Global Risk Management, Walmart, Inc. (moderator)
Michele Adams, Vice President, Risk Management Services, Walt Disney World Resort
Marc Salm, Vice President, Risk Management, Publix Super Markets, Inc.
Michael P. Fenlon, Sr. Director, UPS Global Risk Management
Let’s take a look at a couple different issues facing claims and risk financing.
1. TPA or internal claims team is not not performing as expected. What should I do? It’s important to ask yourself/team what the issues are and how can they be resolved and determine benchmarks for reporting. It is time consuming and money consuming to change so it’s necessary to cover your bases before deciding to change from inhouse to outsource, in house to in house, or outsource to inhouse. To make the most informed decision, take a look at your strengths to see and make sure what you can handle and what you cannot.
2. Considering changing actuarial services providers for casualty claims, what is there to worry about? Create long lasting relationships with these services so they understand your business and your past, present and future business. Continue to education that firm to create the knowledge. When you rotate the lead actuary that creates a new set of eyes and fresh ideas but you are continuing the relationship with that same firm.
3. Dealing with actuaries is very complicated. What metrics should you monitor as leading indicators that you are on the right track? Take a look at simple metrics such as case reserves for your state, case reserves for all states, open case reserves for all claims to name a couple but there are many. Look at incoming claim counts, if the counts are going up then your costs are going to increase. This might make you take a look at other safety procedures to see where you can improve. Some other drivers of claims are labor hours. This can lead to an increase in costs and open case rates.
4. TPA or internal claims has unilaterally modified its approach to reserving or inventory management. What is best approach to get back on track? If you see a swing or volatility in the approach, take a look at your staff first, has there been a big flux in staff turn over before you go and change or jump in to try and fix. At the end of day, consistency is very important.
Whether your company is large or small, insured or self-insured, self-administered or outsourced, what happens in the management of your casualty claims has a direct impact on your company’s finances and overall risk management program.