How Benchmarking Insurance Claims can save time & money
When someone mentions the claims management processes, what comes to mind? Do you think of an abundance of claims data piling up and feel the desperate need for a streamlined claims-related solution?
Solve this problem by using the correct claims management and benchmarking system is the common solution that often brings more questions than answers.
So, let’s start from the beginning. It is a fact that with the available data and analytics, you will be able to improve productivity levels, drive desired results, and proactively prevent fraud. And the most important thing to understand here, is that in data relays critical facts that has the power to unleash valuable insight into your claim’s strategy.
In data relays critical facts that has the power to unleash valuable insight into your claim’s strategy.
The Power of Data
As the New York Times describes, we live in the Age of Big Data. “But what is big data? A meme and a marketing term, for sure, but also shorthand for advancing trends in technology that open the door to a new approach to understanding the world and making decisions.”
In the same line, the World Economic Forum sums it up with the formular “Big Data, Big Impact.” “Researchers and policymakers are beginning to realize the potential for channeling these torrents of data into actionable information that can be used to identify needs & provide services for the benefit of low-income populations.”
As we’ve learned, failure to engage in data analytics means that an organization may miss out on rich data.
Benchmarking, the Key to Success
Now that we understand the power of data collection, let’s apply its importance to the world of claims. There is a lot to be said about benchmarking. After all, it is one of the most powerful forms of data analytics.
Benchmarking can be used to measure competitor success. But it’s also the best tool to find areas to improve your own business.
Innovative Strategy: Use Benchmarking to Make Your Data Meaningful
Data analytics can improve claim outcomes. In some cases; it can even help to prevent future claims. Identifying trends and outliers that may have otherwise gone unnoticed is the trick that will change your strategy.
Comparing data and performance against the industry, is the best way to identify opportunities for improvement and set up long-term goals.
Let’s jump into the daily life of risk managers, insurers, third party administrators (TPAs), and others who handle workers’ compensation claims.
If you ask them what information is most important, they will all say the same thing. Those who work with claims want access to quantitative and qualitative research data that identifies what their high performing claims competitors are doing differently than their peers.
This past July, the Workers’ Compensation Benchmarking Study conducted by Rising Medical Solutions indicated that “the 2020 study marks another industry first, as claims leaders have never before had access to such aggregated frontline data upon which to take action.”
With enhanced expectations for customer service, clients are looking for as much data as possible. Any risk manager hoping to improve their claims management process and explore policy options, needs a powerful benchmarking software.
How to Get Started
Benchmarking requires two basic steps:
1. The right data.
2. Comparison of the data for better results and to avoid fraud.
On the first step, start with what you already have. If your organization already has access to broad industry data sets, the TerraClaim Software can integrate this information into our powerful system.
For step two, choose your competitors! Benchmarking can be used to compare one organization to their peers and also can treat individual departments or business units as friendly competitors.
Claims comparison reporting at every level will improve the entire Claims Lifecycle in your company.
Reports Analysis to the Rescue
Who doesn´t love reports!? Reports allow you to compare data elements from similar claims within the system and display the results on a scatter chart. With the proper graphics, you have the chance to see claims in the most efficient way and make informed decisions about the next steps. But only if it is the correct information …
Business Performance Improvement Resource created a study titled Beware of Benchmarking: Bad data is worse than no data that warns about the dangers of bad data and the outcoming reports. “Bad data is actually worse than no data because it leads the organization to pursue the wrong goals, move in the wrong direction or at minimum, wastes resources.”
Benchmarking is only useful if it’s tied to your organization’s strategy. Entrepreneur said it without sugar-coating it in, How to Not Benchmark Your Way to the Bottom, “Benchmarking addicts never figure out where they failed. Nothing else matters if the strategy is wrong. All the implementation gurus, change agents, organization-behavior practitioners, motivational speakers, and armies of MBAs can’t help a company if the strategy is ineffective.”
To use benchmarking successfully, it is vital to identify business goals and objectives.
Benchmarking: On Your Side
Benchmarking is a powerful tool for gaining business or process improvements. But it TerraClaim we recommend to also bring a human element into the claims process. The key element is to never stop looking for ways to improve. This can be done with the help of a claim’s management and benchmarking software. Insurance Industry variables change constantly and today´s success never guarantees tomorrow’s success. As professionals, it’s important to continue strategizing and scheduling for future benchmarking exercises or when renewing policies are needed.
That’s why we developed TerraClaim to help you launch into benchmarking. We have seen that benchmarking, when used strategically, has the potential to improve the claims process and bring more opportunities.
Gaining on your competitors and getting organized to deliver on internal goals is possible when efficiently using the Benchmarking system.
A robust claim benchmarking program that works for you, and an integrated workers’ compensation claims with proactive management is the ultimate administration platform for simplified benchmarking in the workers’ comp industry.
Our software with more than 4,000 companies represented, 2,800,000 in upcoming claims data, and 10,400,000 unique cases per month is the Risk Management Solutions that you’ve been looking for.
Do you want to try a free demo?
“Benchmarking is a key component to analyzing the performance of a client’s workers compensation program. TerraClaim Benchmark provides TPA’s and their clients with a quality, easy-to-use tool that provides many options to review performance results from multiple data selection variables. It is an important tool we utilize in our client stewardship reports.”
Executive Vice President & CIO