Technology Changes in the Insurance Industry

In a recent interview with Kurt Schuhl, senior vice president and chief claims officer at PMA Cos., and Jim Walsh, vice president of claims at PMA Management Corp. by Cyril Tuohy, managing editor of Risk & Insurance discussed issues the insurance industry is or will be encountering in the near future. They state that the number one issue is “the use of technology to drive superior service and optimal claims outcomes.” They also state that the complexity of claims is growing and this will make claims harder to manage.

This is where technology comes into play. Technology allows claims professionals to gather the most up to date and relevant data for process claims more efficiently and smoothly with the best possible outcome. Another use of technology is time management.  Walsh states, “timely access to relevant loss information can enable the claims service provider to promptly assign the adjuster who has the most appropriate--and effective--skill set. “ This in essence will allow the claim to again be processed properly with the best possible outcome. 

When asked what companies like theirs are doing to utilize technology Schuhl responds, “PMA made a tremendous investment in a sophisticated end-to-end claims technology platform called PMA Claim Center, which was implemented in 2010.” This helps them access their data easier and more effectively. It also allows their customers to see up to date loss information. Schuhl also goes on to describe their online risk management information system, PMA CINCH. With this system clients are able to utilize real time views of loss data. Schuhl finishes by saying, “By conveying information to clients on a real-time basis, they become more aware of developing patterns and can assess their results.” 

How does your company utilize new technologies? Are you using it to its full potential? Leave your answers and see others’ in the comments below.

Do the risks of using non-employee workers outweigh the benefits?

With changes in the economy and with the future of health care many businesses are leaning towards using non-employee workers. This means instead of being on the books as an employee the person is given 1099 status as an independent contractor. In a recent article, employment law attorney Todd Lebowitz states that fewer employees have always meant lower healthcare costs, but after health reform, having fewer employees also means less exposure to penalties that will be imposed when employees opt out of company-sponsored health coverage.

While it sounds beneficial, there are potential risks. Companies that misclassify workers as nonemployees face a range of potential penalties and liability--under tax law, employee benefits law and employment law. In response to the high number of businesses classifying employees as independent contractors the IRS is planning to conduct 6,000 worker misclassification audits over the next three years. Not only will there be audits, but the government is considering creating legislation that would impose additional penalties to companies that misclassify their employees.
According to Lebowitz, Companies who misclassify workers as nonemployees may face liability under a range of legal theories, including:

•  Failure to withhold employment taxes, plus penalties and interest.
•  Failure to pay FICA and FUTA, plus penalties and interest.
•  Failure to pay overtime or minimum wage.
•  Failure to provide employee benefits.
•  Failure to obtain proof of eligibility to work in the United States.
•  Increased exposure under anti-discrimination and anti-harassment laws.

Knowing all of this, would you consider keeping employees as independent contractors or is it not worth the hassle? How do you save money on health insurance for your employees? Comment below.

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Professional Drivers at Risk for Skin Cancer

In a recent article by Risk and Insurance Online, they tackled the issue of professional drivers being at risk for skin cancer based on the amount of sun they get while driving.  They cite a recent study published in the Journal of the American Academy of Dermatology, in which researchers from the Saint Louis University School of Medicine found that drivers were at an increased risk of facial skin cancers, predominantly on the left side of the body. This really should come as no shock given the amount of sun one can get or feel just driving from home to the grocery store.

There are over 1 million cases of skin cancer reported each year. Last year 12,000 deaths were caused by melanoma, the most serious type of skin cancer.  Drivers already have to be aware of back problems and the potential for accidents and therefore should be just as concerned about skin cancer and its signs. According the American Cancer Society here are some signs to look for and have checked out should they appear:

• Changes in a mole- These include changes such as its size, shape, or color. The ACS has a system they call the ABCD System to monitor changes in moles.

o   Asymmetry: One half of a mole or birthmark does not match the other.

o   Border: The edges are irregular, ragged, notched, or blurred.

o   Color: The color is not the same all over and may include shades of brown or black, or there may be patches of pink, red, white, or blue.

o   Diameter: The spot is larger than about ¼ inch (the size of a pencil eraser), but melanomas can be smaller than this.

•   A sore that does not heal

• Spread of color from the border of a spot to the skin around it
• Redness or a new swelling beyond the border
• Itchiness, tenderness, or pain
• Change in the surface of a mole -- scaliness, oozing, bleeding, or a new bump or nodule

There are easy steps that can be taken to prevent this from happening. They are:

• Wear sunscreen and lip balm- Anything with an SPF of 30 or more will give you adequate protection. Make sure to re-apply every few hours to ensure its effectiveness. Keep a bottle in the glove box ready to go.

• Wear a hat- Trucker caps, baseball caps, and boonie caps are good for more than fashion or supporting your favorite team! They help to protect your forehead, eyes, ears, neck and nose from those harmful UV rays.

• Wear long sleeved shirts- Long sleeved shirts will keep the sun off of your arm while it rests on the window. Collared polo type shirts are also a good idea as they will protect your neck. 

It isn’t hard to protect yourself from the dangers of UV rays. Most people just don’t think about the dangers the sun presents even while in a vehicle. How do you and your drivers help keep yourselves healthy and skin cancer free? Do you provide sunscreen? Hats? Bandanas? Share your ideas in the comments below.

Relocation Network Roundup

Our weekly Relocation Network Roundup lets our affiliates know what all the others have been up to, via their blogs. Are you a Relocation Insurance Group affiliate and don't see your blog here? Contact us and we'll be sure to add your blog to future Roundups.

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Injuries More Likely With Younger Work Force

In the moving and storage industry it is very typical to hire younger employees to help do a lot of the heavier lifting and moving as their age allows for more of the physical strain that comes with the job. While the youth might be physically stronger and able to do these things it’s important to make sure they are doing it properly and safely. In an article citing a recent report by the National Institute for Occupational Safety and Health, it was stated that young employees -- defined as those aged 15-24 years old -- are two times more likely to suffer a nonfatal injury than their older coworkers. According to the National Institute for Occupational Safety and Health, The highest nonfatal injury rates were experienced by workers aged 18 and 19 years, at 6.3 and 5.9 injuries per 100 full-time employees, respectively.

In addition to this, according to a previous study by the University of North Carolina at Chapel Hill, about one-third of the teens surveyed said they had not received any safety training on the job. Among the teens, a large percentage claimed that, despite the child labor laws in place, they were using heavy machinery designated for use by certified adults only. The Fair Labor Standards Act generally prohibits the employment of a minor in work declared hazardous by the Secretary of Labor (for example, work involving excavation, driving, and the operation of many types of power-driven equipment).

There are things you can do to prevent workplace injuries for everyone, not just younger employees. Here is a list of some of the things you can do:

• Train your employees to properly use equipment- This may sound pretty obvious but make sure your employee feels they have been trained adequately.
• Make sure your employees know the safety regulations put out by OSHA- You can find them here.
• Have employees wear back braces if lifting heavy objects- again this seems pretty obvious but can be very helpful.
• If employee is injured do not allow them to continue working until they are healed- This simply will help to not make the condition worse.

How does your business prevent workplace injuries? Is your employee base made up of this age group and if so how do you ensure they are working safely?