Workers' Compensation Large Deductibles Study
SIGMA Actuarial Consulting Group is deep diving into the pros and cons of large deductible workers comp policies. Timothy Coomer, CEO of SIGMA Actuarial Consulting Group is outlining a concept for his PhD dissertation on the decision process related to selecting a workers compensation large deductible policy. According to Timothy, "I’m still a long ways from getting a formal proposal written, but I loved the brainstorming this effort created in the office this week."If you work with workers compensation large deductible plans, he would like to hear your feedback. Below are some questions he is considering. What do you think? You can respond to these questions using two quick options. First, click here, and you will be linked to an online survey where you can respond. Second, if you prefer just to email Timothy your thoughts, email TLC@SIGMAactuary.com.
1) When choosing between a guaranteed cost and a large deductible option, how often do most employers consider, as part of the decision process, an actuarially determined loss estimate of the retained losses associated with the large deductible?
2) As part of a more in-depth decision process, how often do employers consider a measure of the potential loss variability associated with the large deductible option? In other words, is a confidence interval analysis or some representation of the spread of risk considered in the decision?
3) In your opinion, how capable are decision makers (CFO/Risk Manager) at incorporating analytics that provide expected loss estimates and confidence interval analysis into their decision making process?4) In a few sentences, where do you see the state of analytics as applied to the selection of a large deductible option?
All responses are strictly confidential. However, Timothy will summarize, in a general format, the results and feedback and publish this in a future blog post on his Risk Management Blog. He believes, and receives affirmation from a variety of industry contacts, that workers compensation large deductibles are going to be a significant area of growth in the months and years ahead. PEO Compass thanks Timothy for his work and look forward to the additional information, research, and ideas posted to his blog on this topic.
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