How Carrier Collaboration Can Help Employers Strategically Settle Complex Claims

Employers face increasingly tough decisions when complex claims reach the settlement stage. They may face the challenge of determining whether to settle, which benefits to settle, how to approach settlement, and for what amounts. These decisions are not merely financial choices, but strategic, human-centered decisions that impact, compliance, costs, and an injured worker’s future.

“Excess workers’ compensation carriers are accustomed to seeing the worst cases, so they bring a unique expertise,” said Stephen Peacock, Assistant Vice President of Client Engagement at Safety National. “Their extensive knowledge can save costs for organizations without minimizing the lifetime medical care injured workers need, and it equips employers with the confidence to make smarter, long-term decisions about claims.”

By following a clear, collaborative framework with their insurance carrier, employers can make better decisions at every stage of the settlement process.

Assessing Financial Challenges

Medical costs associated with catastrophic claims continue to increase, driven by the availability of advanced treatment options and more frequent cost-of-living adjustments. With these inflated costs, it becomes relevant to understand if it is sustainable to keep the claim open. An excess carrier’s medical management team can collaborate with an employer to explore cost reduction strategies, including, but not limited to, bill review. In addition, there may be other alternatives that have not yet been explored.

Developing a Transparent Settlement Proposal

Injured workers deserve the respect and opportunity to understand the exposure and cost of a claim. However, they may refuse to settle because no one has helped them weigh the lifelong potential benefits of settling. Settlement offers should have clear, easy-to-read language that reflects the advantages and disadvantages of settling, and an insurance carrier can help outline both. Often, an excess carrier has more experience handling these situations and can assist in these settlements where sensitivity and compassion are paramount.

Creating Opportunities for Open Dialogue

Injured workers often rely on attorneys or peers for guidance, so how can employers foster trust and hold productive conversations? Excess carriers can facilitate mediation and connect employers with structured settlement brokers, Social Security experts, and Medicare Set-Aside (MSA) specialists. Successfully settling these complex claims is a process that can take several months or years. An excess carrier can help guide and navigate the unique territory surrounding these types of claims.

Weighing the Long-Term Impact

Any stakeholder who has handled claims understands how much more expensive and burdensome claims can become the longer they remain open. So, how does an employer know when it is the right time to close the claim? Carriers can bring data-driven insight to help employers evaluate risk and timing, balancing short-term costs with long-term exposure.