WORKERS COMPENSATION

“If companies continue to prioritize worker safety, we expect good results to continue, though not at the same level as recent years.”

—Rich Stock

Chief Underwriting Officer, Casualty and Surety

Arch Insurance

“Wearable technology plays a crucial role in injury prevention by monitoring body movements, posture, and biomechanics. When an employee engages in risky behavior, such as improper lifting, the wearable device provides real-time feedback.”

—Dale Hoppe

Vice President

Nationwide

Safety and loss control

If there’s one reason to believe that good times can last in workers compensation, it’s the continued improvements in occupational health and safety.

“We’ve seen significant improvements in workplace injury reduction,” says Nesha Courtney, manager of biopsychosocial and return to work services for Broadspire, a Crawford company that serves as a third-party administrator for workers compensation and medical management programs.

“With better safety equipment, stricter safety standards, and more advanced technologies, there has been a decrease in workplace injuries in many of the higher-risk industries like construction and manufacturing,” Courtney says.

In addition, Courtney finds more employers offering “light duty” opportunities for injured workers to continue working in some capacity. “They’re not stuck in a disability mindset,” she says, adding that “most of us connect to other people through work, which affects our mental health and ultimately our physical health.”

Across the board, Courtney finds employers investing in comprehensive safety training through simulations, virtual reality training, and drills. “They are encouraging employees to take ownership of their mutual safety, fostering an environment where safety becomes a shared responsibility.”

Mental health has taken central stage in these efforts, Courtney adds.

“The age of workers … continues to be an issue … . While we have been seeing an aging workforce for some years, we are now seeing an increase in injuries among younger, less-experienced
workers, and those with fewer days on the job.”

—Erin Stober

Assistant Vice President,
Casualty Underwriting

EMC

“There is growing recognition of the importance of the mind-body connection and the role mental health plays in the workplace,” she says. “Employers are implementing programs for stress management, burnout prevention, and mental well-being.”

Don’t let up, Courtney advises. “Keep an eye out for new and emerging risks as you adopt new technologies and processes, and continue to improve reporting of accidents and injuries” she says. “Transparency is essential.”

“While workers comp has statutory rules that mute inflationary pressures, we expect higher inflation could impact claim development moving forward. The critical question is how much and how long.”

—Mario Bracuti

Senior Vice President, Claims

Arch Insurance

Advances in technology

Advances in technology are helping employers improve occupational health and safety.

“We are seeing growing interest in technology to help prevent losses,” says Dale Hoppe, vice president of workers compensation E&S/specialty programs for Nationwide. “The adoption of wearable technology and artificial intelligence is promising.

“Wearable technology plays a crucial role in injury prevention by monitoring body movements, posture, and biomechanics,” he says. “When an employee engages in risky behavior, such as improper lifting, the wearable device provides real-time feedback. Over time, these devices help develop better habits, reducing the risk of sprains, strains and other injuries.”

For its part, Hoppe finds that artificial intelligence analyzes data from sensors, cameras, and records to identify patterns in risk related to ergonomics and workplace hazards. “Risk managers use these insights to proactively redesign workspaces and implement preventive measures,” he says.

“With better safety equipment, stricter safety standards, and more advanced technologies, there has been a decrease in workplace injuries in many of the higher-risk industries like construction and manufacturing.”

—Nesha Courtney

Manager, Biopsychosocial

and Return to Work Services

Broadspire, a Crawford company

Improved safety and risk management are the principal drivers of reduced loss frequency in workers comp, says Rich Stock, chief underwriting officer of casualty and surety for Arch Insurance.

“Workers compensation remains the most profitable major line.”

—Mort Large
Business Lead,

Workers Compensation
Nationwide

“If companies continue to prioritize worker safety, we expect good results to continue, though not at the same level as recent years,” Stock says. He adds, however, that there are two areas of risk where trends are positive: the impact of inexperienced workers in higher risk occupations, such as energy and construction, and severe losses in auto accidents, which Stock claims have become the biggest driver of workers comp claim severity.

“The age of workers, both young and old, continues to be an issue for the line as a whole,” says Stober. “While we have been seeing an aging workforce for some years, we are now seeing an increase in injuries among younger, less-experienced workers, and those with fewer days on the job,” she adds. “A safety-first approach is critical to reducing workplace accidents and driving down workers compensation claims.”

For more information:

Arch Insurance

archinsurance.com

Broadspire

choosebroadspire.com

EMC

emcinsurance.com

Nationwide

nationwide.com

The author

Joseph S. Harrington, CPCU, is an independent business writer specializing in property and casualty insurance coverages and operations. For 21 years, Joe was the communications director for the American Association of Insurance Services (AAIS), a P-C advisory organization. Prior to that, Joe worked in journalism and as a reporter and editor in financial services.