By Debra Spamer, Chief Growth Officer, Company Nurse powered by Lintelio
With the average combined ratio for workers’ compensation on the rise, employers can expect premiums to follow suit. Is your organization prepared to manage these escalating expenses? Implementing an effective nurse triage solution offers an immediate and efficient strategy to mitigate these costs.
Workers’ Comp Ratios are on the Rise
For nearly a decade, the workers’ comp industry has celebrated record low combined ratios, contributing to a strong track record for the U.S. property and casualty (P/C) insurance market. According to Fitch Ratings, workers’ compensation remains the strongest performing major commercial product line for the P/C industry.
Between 2015 and 2023, the workers’ comp sector achieved nine consecutive years of underwriting profits, maintaining an average combined ratio (CR) of 91%, with a remarkable low of 88% in 2023. This sustained profitability can be attributed to a decrease in claim frequency and stable trends in loss severity.
However, Fitch Ratings has projected an uptick in the combined ratio for 2024, pushing it above the 90% mark due to various pressures. These include stagnant or declining premium volumes, rising claims costs driven by medical inflation, and a potential reduction in favorable reserve developments.
For employers, these developments indicate an increase in workers’ comp premiums, creating a financial burden that can impact overall operational costs. Fortunately, companies can take proactive steps to counter these increases by implementing a nurse triage solution.
Nurse Triage: A Proactive Approach to Lowering Claims and Costs
A robust nurse triage program is a straightforward yet powerful tool in managing workers’ comp costs. By offering injured employees immediate access to trained medical professionals, nurse triage services help to reduce unnecessary medical visits, thus preventing claims.
Efficient nurse triage services ensure employees receive timely and appropriate care for their injuries. Many incidents that initially seem serious can be managed effectively with self-care advice from a nurse. In fact, 40% of workplace injuries can be addressed with such guidance, avoiding a trip to a medical facility altogether. This reduction in unnecessary visits helps prevent medical claims from accumulating, reducing total claims volume by 20% or more.
Getting Workers to the Care They Need and Back to Work Faster
Beyond lowering claim frequency, nurse triage also offers significant benefits in terms of minimizing lost work time. By addressing injuries immediately, nurse triage helps prevent injuries from escalating to more serious medical issues, which could otherwise extend recovery times and delay an employee’s return to work. In fact, a proactive triage program can reduce unnecessary claim costs by up to 30%, resulting in substantial savings for employers.
Additionally, the ability to report and treat injuries quickly minimizes the risk of extended absenteeism, improving both workforce productivity and overall cost management. Prompt treatment not only reduces workers’ comp expenses but also enhances the organization’s operational efficiency.
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With the rising cost of workers’ comp premiums, organizations need effective tools to manage and reduce their expenses. Company Nurse powered by Lintelio’s nurse triage service provides employees with fast, reliable access to care while delivering your organization claim-reducing and cost-cutting solutions.
Want to learn more or get started saving? Contact us today at sales@companynurse.com.