Workers Compensation Large Deductibles & New SIGMA Resources

Timothy L. Coomer, Ph.D.

I spent some time this week outlining a concept for my PhD dissertation. It concerns the decision process related to selecting a workers compensation large deductible policy. I’m still a long ways from getting a formal proposal written, but I loved the brainstorming this effort created in the office this week.

If you work with workers compensation large deductible plans, I would like to hear your feedback. Below are some questions I am considering.  What do you think?

You can respond to these questions using two quick options. First, click here, and you will be linked to an online survey where you can respond. Second, if you prefer just to email me your thoughts, email

1) When choosing between a guaranteed cost and a large deductible option, how often do most employers consider, as part of the decision process, an actuarially determined loss estimate of the retained losses associated with the large deductible?
2) As part of a more in-depth decision process, how often do employers consider a measure of the potential loss variability associated with the large deductible option? In other words, is a confidence interval analysis or some representation of the spread of risk considered in the decision?
3) In your opinion, how capable are decision makers (CFO/Risk Manager) at incorporating analytics that provide expected loss estimates and confidence interval analysis into their decision making process?
4) In a few sentences, where do you see the state of analytics as applied to the selection of a large deductible option?

All responses are strictly confidential. However, I will summarize, in a general format, the results and feedback and publish this in a future blog.

I believe, and hear it from a variety of industry contacts, that workers compensation large deductibles are going to be a significant area of growth in the months and years ahead. I will be providing more information, research, and ideas on this topic in this blog.

SIGMA Resources

On another topic, we have built a vast library of resources for insurance professionals. For access, please go to

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As always, please feel free to contact me directly at with questions or comments.

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