10 keys to reducing personal injury claims costs: ISO

Technology has a role to play in reducing personal injury claims costs, but only if specific criteria are taken into consideration. A new report by the U.S. Insurance Services Office (ISO) outlines 10 “critical factors” in reducing these costs.The first is early assessment of damages, key to reducing unnecessary legal costs and setting proper reserves. Insurers want to have a system which allows them to make accurate settlement offers as early as possible in the claims process. Also, systems need to be easy to implement, and integrated with web services. Any system must be able to consider “heads of damage” as well as general damages, taking into account such things as legal costs and lost wages, including future earnings. It must also give the ability to estimate rehabilitation costs and return-to-work potential, to design the most effective treatment plan. And it should be able to assess a broad range of claims, including auto liability, employers liability and general liability.Data management must be a factor, including rich reporting and audit trails, standardized medical coding, and a medical encyclopedia with as much in-depth information on injuries, treatments and costs as possible.The system should also allow for benchmarking of claims against regulatory thresholds.