Carl Reynolds explains JBKnowledge’s integral role in
developing the CompMark Claims Benchmarking tool.
What is your role at Safety National?
I am the Senior Vice President of Claims and head of the claims department.
Please tell us more about your company.
Founded in 1942, Safety National is the leading provider of excess workers’ compensation coverage to self-insured employers and groups nationwide, and has provided that type of coverage longer than any other company in the United States. Safety National is a member of the Tokio Marine Group and is rated “A+” (Superior), Financial Size Category XII, by A.M. Best. Insurance Data Services (IDS) is a data analytic company owned by Safety National.
What internal or industry need prompted Insurance Data Services to build the CompMark system?
Nearly 50% of American workers are covered by self-insured or deductible workers’ compensation programs, yet no quality benchmarking data source exists for TPAs and employers to see if claim costs are in line with their peers. The self-insured community has long been frustrated by the fact that this type of data is not available from rating agencies, state departments of insurance or any other organization.
Why did Safety National select JBKnowledge to build the system?
JBKnowledge’s experience as a technology solution provider for TPAs made them uniquely qualified for this assignment. They were recommended by CCMSI.
How does IDS work?
IDS aggregates non-identifying claims data from contributing TPAs and allows those TPAs to view three key benchmarks from that data: Average Cost of Claim, Number of Claims, and Total Incurred. It is a web-based portal, and users can narrow down their database searches to hone in on the criteria they need to compare to improve and compete on claims processing. All data is HIPAA compliant and stripped of identifying information. Organizations contributing information can assign client numbers to claims data so that they can compare CompMark benchmarks to internal data.
How many other third party administrators are involved so far, and what is the aggregate volume of claims data within the system?
Currently, nine members and 7.5 million claims.
How can other companies involved in self-insured and workers’ compensation claims tap into this resource?
We are looking for other TPAs to join IDS and increase the volume and analytic power of the CompMark system. TPAs must be able to submit data in the prescribed format, sign a membership agreement with IDS and pay an annual subscription fee.
What are the next steps for CompMark?
The system was completed about 18 months ago. Our current focus is on assuring data quality and consistency from members. Next we will be discussing potential enhancements to CompMark’s reporting capabilities with members.
Why is this system so significant for the insurance claims industry?
At Safety National, we have long believed that employers who self-fund workers’ compensation obligations and unbundle their claims administration achieve better claim outcomes. Self-funded employers and TPAs have long been at the forefront of improving benefit delivery systems and claim cost control programs. Now, for the first time, the CompMark benchmarking tool provides a way for these employers and claims administrators to measure the effectiveness of their efforts against relevant benchmarks derived from the claim outcomes of their actual peers rather than first dollar insurance programs.
How does IDS guarantee claims data security and privacy?
Before data is contributed to IDS it must be completely stripped of all carrier, client, social security, and any other personal identifying information. Data contributed to the system is guaranteed 100% HIPAA compliant.
What is your hope for the future of IDS?
Currently, we are focused on increasing IDS membership and growing the volume and analytic power of the data in CompMark. Down the road IDS hopes to provide additional data analytic services to the self-funded WC market, particularly in the area of claim cost trend reports.