May 8, 2019
Many company owners have begun using a ‘digital first’ approach to business, leading to significant changes in workers compensation trends. As we continue into 2019 in fact, the entire insurance industry will see major shifts, and keeping up with these trends will be essential for all involved.
When assessing insurance trends and trying to find out more about them, it’s necessary to view the whole economy, as factors having an impact on the economy can also effect insurance products. One example of this would be tax reform: many countries the world over have reformed their tax codes and regulations, including the U.S., and this has had a significant impact on many forms of insurance this year.
With economists warning that a recession could be on the cards next year, many insurers have shifted their focus to improving operational and in-house efficiency, and are beginning to offer their clients personalized products that meet their changing needs. The needs of clients are of course unique, and as the age of insurance changes and advances, customized business insurance policies are being created that can fit the needs of each client relative to the risk factors involved in their line of business. As technology also progresses, this can be used to help clients file their claims much faster than ever before. Here are some Workers Compensation trends to look out for this year:
Workers Compensation trends for 2019:
Claims related to workers compensation have been gradually decreasing, and research has shown that this can be largely attributed to employees working in safer environments; getting injured or falling sick less frequently or less seriously. However, despite this decrease there is still a role for insurers, particularly in the case of those employees who may have fallen seriously ill or injured themselves at work and who may have to miss out on employment for many years to come. Some trends related to workers compensation insurance are:
- Natural disasters
- Changes to rates from legislative reform
- Treatment guidelines for drugs
State legislative reform can include changes to the fee schedules of pharmacies, or changes to make things more efficient for customers. And with the increasing occurrence of natural disasters affecting many areas of the U.S., insurance companies have had to adapt and increase their coverage.
Naturally, these trends will affect the rates of workers compensation insurance, and traditional insurance agencies will need to work together to help give clients the right kind of coverage and the right kind of plans.
With the insurance industry changing and evolving at a rapid pace, insurers are turning to cloud computing and block chain management to stay ahead of the game, and exactly how they react to the needs of their clients will continue to have a significant impact on future trends related to workers compensation trends.
To discuss these trends in further detail, and to know more about what kind of coverage would suit your businesses changing needs, make an appointment with your trusted payroll processing provider.