Avizent: New Challenges Require Cost Savings

The volatile, uncertain economy and historical upheaval in some segments of the insurance industry are creating new challenges for corporations and public entities seeking ways to effectively control costs associated with workers’ compensation, and auto and general liability programs, according to Avizent executives.

“The marketplace is forcing companies to find new partners, become more cost-conscious and to develop innovative ways to reduce expenses,” said Lori Daugherty, president and CEO of Avizent. “While there are many issues to address in 2009, saving money is really the key challenge for our customers. They are looking to us to come up with ways to control costs on claims, so that more money can go to their bottom line.”

According to company executives, the factors affecting cost and creating challenges for self-insured companies will include:

1. The immediate hardening of the insurance market, and resulting issues with capacity and rising premiums,
2. Ongoing changes and transitions in the third party administrator (TPA) marketplace, and
3. Demand for higher levels of customer service due to reductions in staffing and a greater need for a more consultative approach to client customized programs.

Working in collaboration with existing customers, Avizent’s management team identified the solutions that will help self-insured companies effectively manage their workers’ comp and liability programs.

• Develop group captive programs. Through Avizent’s alternative risk solutions, small to mid-size companies and associations can form a captive insurance program – an option usually only feasible for larger Fortune 1000 companies. Avizent’s model combines the claims management services of an expert TPA and an easy-to-access captive structure with the willingness to bear part of the financial risk – an approach that can lower claim costs and return premium dollars to the employer when losses are low.
• Create comprehensive and integrated risk management programs. Avizent brings its clients TPAs, along with its own alternative risk division, and specialty services, including U.S. longshore and harborworkers’ claims management (workers’ comp services for the maritime industry), and a full-service managed care program with a PPO network focused specifically on workers’ comp.
• Ensure technology is maximized to increase efficiencies and lower costs. Most TPAs today utilize legacy systems, creating a host of issues ranging from slow processing times and difficulties adding the latest regulatory requirements, to difficulties moving data between vendors. Avizent is one of the only major TPAs to offer a single-platform client server application using the latest Microsoft® .NET Smart Client technology. In October, Avizent announced the release of its new VISUAL Claims Studio (VCS) claims administration system. VCS is a Windows-based, client-server application designed to process, manage, analyze and report claims data throughout the lifecycle of a claim.