Value of Business Intelligence for Workers’ Compensation
Reuters estimates that the global business intelligence market is expected to grow to $29.48 billion by 2022. The insurance industry is one of the top 3 industries overall with the highest adoption rate of business intelligence and North America remains the largest market for BI software adoption.
As we navigate through the digitally driven world we live in today, business intelligence is becoming an essential way for many workers’ compensation insurance carriers to obtain a deeper understanding of what is behind the mounds of information presented to them on a daily basis.
In contrast to other property and casualty claims, workers’ compensation requires a claims representative to collect and review extensive documentation, along with adhering to various jurisdictional regulations before reaching a final claim resolution.
These workers’ compensation claim representatives and supervisors are making decisions every day that can alter the course of a claim, such as; approval of medical treatment, determining compensability, or whether to refer a claim to a nurse case manager or legal counsel.
Providing easy access to claim information in a dynamic, real-time, as-needed basis enables the key stakeholders in a workers’ compensation claim department to properly answer business questions the moment they arise without hesitation or second guessing.
The use of business intelligence can make a difference within workers’ compensation claim lifecycle in these areas:
- Workforce management – increasing claim performance by prioritizing and streamlining claim assignment to the appropriate resource
- Identifying subrogation opportunities early to maximize loss recovery while reducing loss expenses
- Recognizing claims quicker that have the propensity for litigation, mitigating loss adjustment expenses for defending disputed claims
- Administering a quicker settlement process and ensuring amicable benefit resolution, by analyzing claims and claim histories. This reduces costly payouts and decreases claim cycle times.
As expressed by many Chief Data Officers, the top three business intelligence trends are data visualization, data quality management, and self-service business intelligence.
Workers’ compensation carriers who leverage business intelligence today, and continue to include it in their technology transformation strategy will reap endless benefits for near term and beyond.