Warren Vickers
CapSure

Information captured from big data can give clients an insight into which areas of exposures they could benefit from, specific to their industry sector. Warren Vickers of CapSure explains

What common trends are you seeing in workers’ compensation? What about in medical stop-loss claims?

Workers’ compensation: Business owners and shareholders have become very aware of the litigious environment that we live in. As a result, they have had to adapt by implementing extremely sound safety policies and procedures within their businesses. The safer business practices have begun to lower their workers compensation claims, thus allowing them the opportunity for the first time to significantly profit from their own safe behaviour through setting up a captive insurance programme.

Medical stop-loss: Commercial insurance brokers possess a major business opportunity to use purpose-built insurance companies that provide medical stop-loss insurance to their current clients who have self-funded health insurance plans. The broker gets to participate in the underwriting profit and investment income from the health plans they are administering, rather than passing those profits on to a commercial stop-loss insurance carrier. With efficient underwriting, brokers can generate significant additional revenues. These are in-house revenues they are currently passing off to commercial stop-loss insurance carriers.

Have you seen an increase in workers’ comp and/ or medical stop-loss claims?

Workers’ compensation: CapSure Risk has very thorough underwriting assessments, claims review and processing controls for each of our worker compensation clients. We help programme members develop workplace policy guidelines to further assist them in creating a safer working environment. Our captive programmes have performed very well and claims experience has been lower on average.

Medical stop-loss: Our medical stop-loss programmes have traditionally lower claims history on average. Our underwriting assessments, claims review and processing procedures are very efficient and streamlined, and this allows our captive programme to perform extremely well.

How is data used to help captives reduce losses in workers comp?

Our data analytics tools allow us to analyse each prospective client’s business and determine areas of risks within the specific business, as well as areas of risk within the industry sector.

This information provides our clients valuable insight into their current risks, as well as what types of unforeseen risks they may encounter in the future based on their industry sector.

The data gives our business clients a head start to develop procedures that will efficiently and effectively deal with any future incidents, which consequently lowers their overall exposure.

A lot of our day-to-day operations have become streamlined through automating certain areas of our business which allows us more face time interaction with our client base.

How is technology evolving to help captives manage with all of the data available?

The diversity of information that we are able to capture through the evolution of big data provides us opportunity to perform detailed analysis on each prospective and current captive client, to determine exactly what areas of exposure they could benefit from based on their unique business and their specific industry sector.

This helps our clients’ businesses to save money by eliminating unnecessary and expensive coverages currently bundled into their existing traditional insurance policies. CIT

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