The start of 2022 marks nearly two years since the COVID-19 pandemic began. During these past two years, there have been high levels of uncertainty surrounding the pandemic itself. In addition, the pandemic has the potential to greatly impact the workers’ compensation insurance industry as a whole.
For one thing, the pandemic brought with it the rise of companies offering remote work options to their employees. Working from home is not possible for every type of employee, of course, but those that were able to work remotely largely were allowed to do so, especially in the early days of the pandemic.
This increase in the number of people working outside of the office could bring about some interesting changes to workers’ compensation insurance. For example, it can be incredibly challenging for companies to set safety standards for each remote employee, as their work environments would all be different. That poses a challenge to insurance companies administering workers’ comp claims as well, as it can be more challenging to adjudicate a claim with such varied work environments.
Even as the two-year anniversary of the arrival of COVID-19 in the United States approaches, many uncertainties such as this example still remain. While no one knows what the future may hold, there are proactive steps insurance companies administering work comp claims should take.
One consideration for insurance companies in this field should be working with a third-party administrator (TPA) for all work comp claims. An experienced TPA can draw on its history and experience to benefit the insurance companies that it currently partners with for work comp claims.
As you consider which TPA to work with, be sure to take into account not only a company’s history but also its processes for claims. Trusted TPAs should have processes that have been proven to work and that can be implemented for your insurance company to help hold down costs, for instance.
Another important benefit to look for is whether a TPA has developed a provider network. This can represent myriad benefits for your company and your claimants. Providers within the network should offer high-quality care, which delights claimants. They should also offer discounted rates to insurance companies, which holds down your claim costs and improves the bottom line over time.
There are many more potential reasons to work with a TPA, especially in these uncertain times within the work comp industry specifically. And taking a proactive approach to work comp claims by actively looking for ways to improve claims and help hold down costs is a smart move in 2022 and beyond. For a more in-depth review of how partnering with an experienced TPA such as Northwood can benefit your insurance company, please call Rosanne Brugnoni at 586-755-3830 ext. 3771.
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