An incident-based approach to claims and risk management helps self-insured businesses get ahead and stay ahead by tracking incidents from the start and capturing critical data that may be lost in traditional systems. These insights can help prevent future losses and create a safer work environment for everyone.
The problem with traditional claims-focused systems
Traditional claims-management solutions often prioritize the claims process itself while leaving incidents and near-misses untracked or as separate, loosely connected data points. In these systems, where incidents exist independently, claims managers are tasked with the tedious work of connecting them to claims in a meaningful way.
On top of the extra effort, critical information can slip through the cracks, creating gaps in risk visibility and making it harder for businesses to proactively identify trends and prevent future incidents.
Simply put, most claims-management systems aren’t geared for effective risk management.
What is incident-based claims management?
Incident-based claims management links all relevant data from the moment an incident happens, providing a more complete picture of workplace risks and enabling organizations to act earlier and more effectively.
When an incident — such as a workplace injury, vehicle accident, or property damage — occurs, it is immediately logged into the system. All new information, including subsequent claim information, is seamlessly tied together in a risk management information system (RMIS). From there, the organization can keep tabs on all related details, notify stakeholders, and take necessary actions to prevent further escalation.
This approach puts incidents at the hub and creates a direct link between workplace safety and risk management. (OSHA compliance, for example, is based on incidents, not necessarily claims.) By tracking all incidents — including those that don’t immediately result in claims — businesses can get a clearer picture of their overall risk exposure and can proactively address issues before they escalate.
Why tracking incidents, not only claims, is a smarter move
Instead of just focusing on claims that have already been formally submitted, an incident-based approach gives you insight into everything — from close calls to formal cases to resolution.
- Improved cost tracking: One accident can result in claims across multiple policies (e.g., workers’ compensation, property, third-party general liability). An incident-based approach allows organizations to track all related claims together, even when some are managed internally and others by third-party administrators or carriers. This comprehensive view makes it easier to understand total costs at the incident level, aiding in management decisions, self-insurance strategies, and future policy negotiations.
- Reduced redundancy: Traditional claims-only systems often force duplicate data entry when multiple claims arise from a single event. By centralizing incident tracking, businesses eliminate inefficiencies and improve data accuracy. Critical data points — such as date of incident, date reported, and description — are only entered once, improving accuracy and reducing administrative workload.
- Shared documentation: Incident-based systems allow photos, documents, and notes to be stored and accessed in one place, ensuring consistency and reducing the risk of missing key information.
- Natural data flow: Unlike the oxymoronic “notice-only claim” in traditional systems, data in an incident-based system flows naturally from incidents into claims as events unfold, maintaining continuity and providing real-time insight into risk trends.
Pairing this comprehensive data capture with automated notifications and updates ensures that the right people are alerted as soon as an incident occurs, leading to faster response times and better coordination across teams. And keeping claimants informed throughout the process builds trust and improves their overall experience.
Making the switch to an incident-based approach
Switching from traditional claims management tools or manual spreadsheets might seem overwhelming, but it doesn’t have to be. APP Tech’s Cloud Claims makes it easy to adopt an incident-based approach with a user-friendly platform that simplifies data intake and tracking, customizable workflows that fit your business and all its nuance, plus scalable features that grow with your organization.
Staying ahead of claims and risks requires a smarter approach. An incident-based system not only helps businesses manage claims more efficiently but also provides valuable insights that can prevent future losses. By focusing on incidents instead of claims and by capturing and analyzing data early, companies can improve workplace safety, support their employees better, and reduce claim costs.
Ready to improve your claims process? Contact us. We’re happy to give you a Cloud Claims tour and work together to determine if an incident-based approach is right for your company.
