Workers’ Compensation Program Benchmarking
Many employers now use benchmarking to evaluate various aspects of their workers’ compensation program in relation to peer group companies. Marsh Advisory helps you identify where to make improvements, increase profitability, and implement best practices.
What's the cost of your workers' compensation program?
Marsh Advisory provides organizations with an enhanced workers’ compensation benchmarking report. This report contains metrics and benchmarks that help identify the unique cost drivers of your workers’ compensation program.
The report provides you with Marsh Advisory’s proprietary, quantified scoring tool that compares your performance to a custom peer group. It indicates how your workers’ compensation program stacks up — and how it has progressed over time — in managing three important areas:
- Environment - Causal factors driving your frequency of losses.
- Claim - Post-loss claim management factors driving severity.
- Data - Cleanliness and validity of claims data.
Who it's for
Your organization can benefit from Marsh Advisor's benchmarking if you:
- Want to know where to focus workers’ compensation-related resources and improve claims management and bottom line performance.
- Are concerned about an increase in your experience mod.
- Have had a minimum 100 claims per year for the past five years.
- Have not conducted a benchmarking exercise in the past two years, or lack industry comparison data.
What you receive
As part of our benchmarking, you receive the following:
- A comparison of your program with those of a customized peer group.
- A score that tracks your improvement in three key areas: accident prevention, claims management, and data management.
- An analysis interpreting over 20 different key performance indicators that illustrate workers’ compensation program trends within your organization.
- Identification of potential cost-reduction opportunities and cost drivers.
- An analysis of the accuracy of your workers’ compensation program data.
- Recommendations for the design and implementation of a cost mitigation strategy.
At the core of our benchmarking report is our proprietary database of over 7 million workers’ compensation and general liability claims. The data are at various valuations and developments, allowing our team to provide trending results over time. Using this data, our consultants establish your peer group and run a series of comparative metrics that quantify the cost drivers as we follow the life cycle of your claims.
Your score is a performance measure that shows how your program with others. Achieving a result in line with industry and peer metrics yields a perfect score of 100. Companies that show declining trends or below industry average results receive a lower score, depending on the level of impact the result would have on overall workers’ compensation costs. As your program results improve year over year, your score will reflect that improvement to your senior management.
Our data checking
You rely on your data as a basis of good business decisions — workers’ compensation program data are no exception. Yet, in our experience, data are often not reliable or complete. So, a key feature of your workers’ compensation benchmarking report is a summary of data elements’ accuracy and completeness. The Marsh Advisory team runs your data through a series of checks and balances to be sure that the data are reliable and provide a diagnostic, by data field, of the frequency of errors. The outcome of this review and the potential impact are included in your score.
Our results summary
In addition to your score and benchmark metrics, the workers’ compensation benchmarking report includes a results summary, which identifies loss cost drivers and a series of recommendations to improve specific aspects of your program. These recommendations may include recommendations and solutions for:
- Mitigating large losses.
- Reducing claim closure rates.
- Conducting ergonomic site assessments.
- Improving synergy with third-party administrators and vendors.
- Reducing costs beyond claims, such as those related to collateral requirements, letter-of-credit requirements, and premiums.