Workers comp fraud reports increasing; Dramatic rise in compensation claims, higher legal, medical costs affect industry.(Column)

Byline: Derrick Amato and Tewabe Joro Ayenew

Can't find affordable workers compensation insurance? You are not alone. There's been a dramatic increase in fraudulent workers comp claims-up to 40% to 50% higher in 2003 alone, according to some insurers. And as if that wasn't enough, the fraud is compounded by skyrocketing legal and medical costs. The result of cost increases is insurer consolidations and closings and, ultimately, workers comp insurance rates that are affecting the bottom line of virtually everyone in the industry.

So what's the solution? One tactic working for a growing number of organizations is taking a new approach to litigation management.

First, a look at the some of the causes impacting costs. While the …