Nationwide Workers’ Comp AI: pay for claims you can prevent

For more than a century, the workers’ compensation system has been the cornerstone of the workplace safety and employee protection. This major settlement, which provided compensation for injured workers in exchange for their right to sue their employers, served its purpose well. But now there’s a new proactive approach that promises to revolutionize the computing landscape for workers: artificial intelligence (AI) that analyzes workplace video to effectively reduce risks, injuries and premiums.

The traditional workers’ compensation system has long operated on the principle of paying claims after the fact. When an employee is injured on the job, they file a claim and, if approved, receive compensation for their medical expenses and lost wages. Although this system has provided a safety net for injured workers, it has its limitations.

First, it does not address the root causes of workplace injuries. It is a reactive approach that intervenes only after an incident has occurred. Second, it imposes a financial burden on employers and insurers who have to cover the costs of claims, leading to increased premiums and administrative costs. This begs the question: Is there a better way to approach workers’ compensation? We think the answer is yes.

AI to detect risks in the workplace

Enter artificial intelligence, which is changing the game in the world of workers’ compensation. AI, specifically computer vision technology, has the potential to detect and mitigate workplace risks before accidents happen. This paradigm shift towards claims prevention could be a game-changer for insurers, brokers and customers alike.

AI-driven computer vision technology can provide unparalleled insight into workplace safety. It can identify potential hazards, ergonomic risks, forklift hazards and environmental threats that might otherwise go unnoticed. This level of foresight enables insurance professionals to offer proactive solutions to their clients.

The cost of injuries versus the falling costs of technology

In recent years, the costs associated with workplace injuries have been steadily increasing. Medical expenses, lost productivity, and increased insurance premiums have contributed to the financial burden of workplace accidents. This necessitated finding innovative solutions to limit these rising costs.

While the costs of workplace injuries are rising, the costs of technology are steadily falling. Security cameras and the development of AI, in particular, have become more accessible and affordable. This convergence of factors creates a unique opportunity to combine workers’ compensation with AI.

AI does offer value because, in this context, it refers to computer vision technology that can identify and analyze potential risks in the workplace much better than traditional loss control.

Here are some of two example areas where AI can make a difference:

Ergonomic risks: AI-powered cameras can monitor employee movements and posture, flagging potential ergonomic risks and suggesting corrective measures to prevent musculoskeletal disorders.

Forklift Risks: Computer vision can track forklift operations, identify unsafe practices and alert workers and supervisors to patterns that could cause accidents.

Payment of claims

The advent of AI in workers’ compensation is a game-changer, allowing insurance professionals to break free from the traditional claims settlement cycle. Instead, they can proactively work with their clients to prevent injuries and reduce costs.

Insurance professionals armed with AI technology can partner with their clients to create safer workplaces. By identifying and addressing potential risks before accidents occur, they can reduce the frequency and severity of claims. This in turn leads to lower insurance premiums, improved productivity and a safer work environment for everyone.

In conclusion, the integration of AI, particularly computer vision technology, into the workers’ compensation landscape represents a significant shift from reactive to proactive risk management. This innovation has the potential to redefine the way insurance professionals approach workplace safety and ultimately lead to a more cost-effective and efficient workers’ compensation system. It’s time for a rethink matching workers with AI and to shift our focus from paying claims to preventing them.