September 23, 2015
DataPath’s Director of IPS Discusses How a Shifting Business Landscape Affects Indemnity Payments
Dave Stair, DataPath’s Director of Insurance Payment Solutions, is featured on WorkCompWire’s “Leaders Speak” section. Stair’s article, “Shifting Business Landscape Represents Indemnity Payment Game Changer” addresses the challenges of making indemnity payments to an increasingly mobile workforce.
While claim frequency has declined over the last decade, claim severity is on the rise. This increase means that claims are open longer, leading to an increase in payments. With more payments to administer, there is a greater risk of missing, duplicate, or incomplete payments.
Given that the modern workforce is increasingly more mobile than before, workers may not have access to their home banks. In addition, the FDIC estimates that there are 25 million workers who are underbanked. These factors mean that injured workers may have trouble getting their payments, which could be lost, late, stolen, or undelivered.
With the ever-present and often tricky social media reality, an unresolved payment issue can lead to larger repercussions. An injured worker who does not receive payment will be upset and could potentially ruin a company’s reputation with an angry Facebook post or tweet, which are often visible to the whole public.
Therefore, companies need to re-evaluate how they process indemnity payments. One solution to consider is if a bank-neutral payment solution can help alleviate costs, send payments quickly, and address the needs of a mobile employee base.