You may have seen our ads offering an affordable Workers' Compensation Statistical Audit, but what does that mean? What actually happens? What can you expect? Why should we get one?
All great questions. The simple answer is... we compare reality to what's been reported to NCCI & the independent bureaus for your company and present to you the difference. The reasons you'd seek to complete an audit are numerous but can be summed up in a few points:
You've experienced issues and would like a solid base of understanding from which to solve them. This can include regulatory intervention or a less-serious issue you've identified in your own operations.
You've undergone or are about to undergo a change. Knowing the reality of your situation before and during a change is invaluable and can save money, time and frustration.
Naturally, each audit is its own undertaking, but the end result is the same: you will understand where you are, where you need to be and how to get there (with or without our services).
Now, let's discuss process. The following phases are central to any Statistical Reporting Audit.
In this phase, we learn about your company. It consists of a call or two and some NAIC filing reviews (we retrieve the NAIC data ourselves).
In this phase, we collect the applicable data from reports, data dumps or financial statements that you provide. We then compare that to what has been reported. This is the phase where we see such differences as:
Premium Discrepancies (missed audits, missed revised audits, unreported Statistical Codes, ect.)
Claim Discrepancies (unreported claims, mis-valued claims, overreported catastrophe claims, ect.)
We make what could be a frightening phase, seeing your results, an educational and informative experience. You're likely doing better than you suspect, but the audit results are where we'll help you interpret any findings and explore their implications. Some major insights we've provided in the past are:
Mis-Reported Claims and/or Premium leading to incorrect Experience Mods (mostly lower than normal, causing a loss in premium).
Delays in Proof of Coverage reporting leading to non-compliance with minimum notification periods for cancellations and fines for late reporting.
Mis-matching across reporting types (Policy, Unit, Medical and Indemnity Calls) leading to a high level of rework.
Next Steps Phase
The most important step answers the question: "how do we fix or improve what we've discovered?" LGC wouldn't point out issues without offering solutions.
Hopefully, at this point, we're congratulating you on how well you've done and only suggesting a few minor changes for efficiency. In the event there's more to address, we always offer solutions that include our products (outsourcing or our self-serve SaaS platform, wcSYNC) as well as solutions that you can tackle yourself, independently.
In summary, a Statistical Audit is an easy, affordable way to provide your leadership team with an easily-understood full view of a company's standing, processes and any shortcomings in the Statistical Reporting function.
Whether it's building confidence before or during a core system update, gaining understanding for planning during times of growth or getting a handle on new or old issues, LGC's Statistical Audit will make your company more efficient, knowledgeable and more prepared going forward.
To learn more or start your audit soon, reach out to Amy Hardy(firstname.lastname@example.org).
LGC, of course, can help a carrier avoid the concerns altogether. We provide world-class outsourcing service as well as wcSYNC: a fully-featured SaaS platform designed to help a Carrier take NCCI & Bureau reporting inhouse while still reducing costs and risks.
Learn more about wcSYNC here.