How does the Claims Management function affect the WC premium?

The short version of this answer is that all elements of premium calculations are based upon loss experience for all similar insured businesses and this is expressed in the WC rate, the experience modifier, the individual insured claims, the retrospective adjustments, the dividends, the assessment charges, the scheduled modification ratings, the application and rating for large deductible plans. The claims have two basic elements to be managed and this is a constant monitoring, review and communication with the claims adjuster. The two basic elements are the validity of the claim and the speed of closure of the claim. The claim cost is two fold: the incurred amount is the total of the paid portion of the claim and the reserve portion. The paid portion must be examined and managed for appropriate indemnity payments and medical payments. The second cost aspect is the reserve portion which must be managed for accuracy as the reserve portion is partially derived from the adjuster's pure judgment and is therefore subject to objective management. Managing the reserves will manage the cost. Working the resolution of a claim from the insured's perspective and costing element benefits the carrier underwriting profit.