Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Early Detection of High-Risk Claims at the Workers' Compensation Board of British Columbia

Ernest Urbanovich, Ella E. Young, Martin L. Puterman and Sidney O. Fattedad
Interfaces
Vol. 33, No. 4 (Jul. - Aug., 2003), pp. 15-26
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/20141265
Page Count: 12
  • Download ($30.00)
  • Cite this Item
Early Detection of High-Risk Claims at the Workers' Compensation Board of British Columbia
Preview not available

Abstract

We developed a combined decision-analysis and logistic-regression approach for identifying high-risk claims at the Workers' Compensation Board of British Columbia (WCB). The early detection of such claims and subsequent intervention is likely to reduce their eventual cost and to speed up worker rehabilitation. High-risk claims are extremely costly to the WCB; for the approximately 321,000 short-term disability claims with injury dates between 1989 and 1992, high-risk claims accounted for $1.2 billion (64 percent) of the total payment of $1.8 billion, even though they constituted only 4.2 percent of the claims. We developed separate logistic regression models for each injury type. We found that the age of worker and number of workdays lost were predictive of high-risk status. We used decision analysis to develop a classification rule that has high out-of-sample predictive power. The WCB has incorporated these results in a claims-profiling scorecard, which identifies claims needing early intervention. We estimate that our method saves the WCB $4.7 million annually.

Page Thumbnails

  • Thumbnail: Page 
[15]
    [15]
  • Thumbnail: Page 
16
    16
  • Thumbnail: Page 
17
    17
  • Thumbnail: Page 
18
    18
  • Thumbnail: Page 
19
    19
  • Thumbnail: Page 
20
    20
  • Thumbnail: Page 
21
    21
  • Thumbnail: Page 
22
    22
  • Thumbnail: Page 
23
    23
  • Thumbnail: Page 
24
    24
  • Thumbnail: Page 
25
    25
  • Thumbnail: Page 
26
    26