In the recent movie, The Incredibles, the main character is an animated superhero who must retire from that role due to lawsuits filed by the people he was trying to rescue. His presumed comedown in life is that he later is employed as … an insurance claim adjuster.
Many risk managers are muttering, "Incredible," to themselves when they scan workers' compensation case reserves, many of them set by outside third-party claim administrators. Often, risk managers and clients are floored by adjuster case reserves and reserve jumps. Sometimes, these hikes occur without warning, without any apparent reason, and at the eleventh hour.
When division manager bonuses depend on safety records, a reserve jump can mean the difference between making plan (and bonus) or not. In some insurance pricing schemes, such reserve spikes may cause insureds to have to pay more money to insurance companies for premiums.
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
