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.

Does Group Health Insurance Make Sense for My Business?

Like most Americans today, healthcare reform is at the forefront of the minds of virtually all business owners, managers, and employees. While planning ahead is always a good move, many of the components of President Obama’s proposed legislation will not take effect until at least 2013. In the meantime, we still face the age-old question: “Does group health insurance make sense for my business?”

Obvious factors such as cost of premiums, tax benefits, and overall health of staff are common to all businesses. Instead, let’s explore the question using conditions specific to the relocation industry: injury risk, high turnover rate, and low wages.

Injury Risk

Movers are obviously subject to rigorous physical activity which can put them at higher levels of risk for injury. It might make sense to help keep employees as healthy as possible by offering medical benefits, which may also keep workman’s compensation claims to a minimum. However, many hourly laborers continue to work with known injuries to avoid missing any wages for time off tending to them.

High Turnover Rate

Most group insurance plans require a 90-day employment period before new hires become eligible. This helps avoid unnecessary paperwork and administrative costs for the employer. Unfortunately, there tends to be a high turnover rate amongst relocation professionals, so a relatively high percentage of workers never become eligible for benefits in the first place.

Low Wages

Of course some employees will inevitably stay with you for longer terms, rendering them eligible to participate in a group insurance plan. In general, employees with healthcare benefits tend to be happier with their employment and of course in better shape to perform their jobs. Although according to the U.S. Department of Health and Human Services, workers with lower wages may prefer to keep more of their paychecks over contributing to group insurance premiums. Tack on deductibles and co-pays, and suddenly healthcare coverage doesn’t look so attractive to a low-wage, hourly employee.

So, should you provide group health insurance benefits or not? We’re willing to bet that for most relocation firms, it just doesn’t make sense financially. However, we want to hear from you! Are you currently providing medical benefits? Why or why not? Share your thoughts and discuss in the comments below.