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Operations Research in the Insurance Industry: II. An Application in Claims Operations of Workmen's Compensation Insurance

Author

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  • William S. Jewell

    (Teknekron, Incorporated, Berkeley, California)

  • Tom L. Johnston

    (Teknekron, Incorporated, Berkeley, California)

  • Stephen S. Leavitt

    (Teknekron, Incorporated, Berkeley, California)

Abstract

This paper presents an application of operations-research techniques to managing claims in workmen's compensation insurance. It describes the investigative studies and their conclusions, outlines the systems design and implementation, and gives a sample of the validation studies. Implementation of the proprietary claims-management system described has provided dramatic reductions in case durations and paid dollar losses, while returning the injured worker to his ultimate level of rehabilitation in a shorter time.

Suggested Citation

  • William S. Jewell & Tom L. Johnston & Stephen S. Leavitt, 1974. "Operations Research in the Insurance Industry: II. An Application in Claims Operations of Workmen's Compensation Insurance," Operations Research, INFORMS, vol. 22(5), pages 929-941, October.
  • Handle: RePEc:inm:oropre:v:22:y:1974:i:5:p:929-941
    DOI: 10.1287/opre.22.5.929
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