The workers’ compensation market is one of the most expansive markets in the world, covering everything from small startups to major corporations, freelance workers to highly paid executives. It’s important for those in the industry to look at where the market is and where it’s headed, especially as a new decade is about to begin.
Every year for the last 10 years, the National Council on Compensation Insurance (NCCI) has reported on the industry, gathering data from carrier executive leaders in the workers’ compensation industry to get some perspective on the different needs and challenges.
What the researchers discovered was a competitive workers’ compensation market that’s constantly changing. Here’s a better look at the information uncovered by NCCI.
A Changing Workforce and Workplace
The world of workers’ compensation is changing, even in the more dependable sectors of the industry. From providing construction workers insurance to freelance writers, what constitutes an employee and their workspace has evolved. An aging workforce, more remote workers, and new technologies have all lent their hand in changing the scope of insurance.
Insurers are also showing concern about their ability to maintain some profitability and premium levels that may be hurt by changes in loss cost trends, the economy, and legislation. To this regard, insurers are looking at premium levels and underwriting in order to remain competitive and seeking opportunities to develop new markets.
Medical costs, advances in technology, and determining the right amount of medical care are also major issues facing the workers’ compensation market today. While these rising costs are being highlighted in their budgets and financial planning, stakeholders are keeping an eye on medical advancements to help steady the right care for injured workers and improve their return-to-work outcomes, which can help save money and resources.
The Future of Workers’ Compensation
While the industry can hang its hat on a consistent need from clients and industries, the future of workers’ compensation is one that will see steady and consistent evolution moving into the new year and decade.
The traditional workplace of having people come in every day throughout the week, from nine to five, is increasingly deteriorating. Even major corporations are offering their employees guaranteed work-from-home days, which is affecting how they go about workers’ compensation based on risks that their employees face at home.
What’s more, social issues, such as opioid abuse and legalized cannabis are throwing their own wrenches in the workers’ compensation system, challenging companies with new hurdles in how they cover employees with certain medical needs.
More insurers need to educate their stakeholders and employees on the benefits of workers’ compensation by highlighting how the workers’ comp industry has influenced safer workplaces and better long-term outcomes for injured workers.
About Monarch Partners Group, LLC
For more than 30 years, Monarch Partners Group (MPG) and affiliate Nationwide Employer Services LLC have focused on providing Workers’ Compensation insurance solutions for distressed risks and industries. Our long-term history and expertise in the space and market sources enable us to find solutions for business owners and brokers that they may otherwise not have access to. Our success is reflected in the $900 million in payroll in our programs. We write Workers’ Compensation coverage for all types of risks in all states with solutions that include the Standard Markets, Administration Service Organization (ASO), Professional Employer Organization (PEO), Employer Of Record (EOR) and Captive Insurance programs. For more information, give us a call today at (855) 435-5153.