The five most pressing issues facing the workers’ compensation marketplace in 2019
Each year the National Council on Compensation Insurance, better known as the NCCI, conducts an annual survey of workers compensation insurance executives. from more than 100 carrier companies across the country to compile a list of the five most pressing issues facing this line of insurance. This aids the NCCI’s overall mission in helping “to foster a healthy workers’ compensation system”.
“We place a great deal of value on the feedback we get from industry executives,” said NCCI President and CEO Bill Donnell. “In turn, we will use our Focus on 5 to provide our industry stakeholders with the research and insights they need to navigate a complex workers compensation environment.”
The goal is to gauge what issues, trends, and challenges, will be keeping executives up at night during the coming year. So with that said, here’s a look at the NCCI’s issues from its “What’s Keeping Workers Compensation Executives Up At Night? list.
The Changing Workplace/Workforce
What they said: More than half of insurer executives interviewed saw adapting to the changing workforce and workplace as a challenge for 2019. They expressed concern not only over new and changing risks associated with an aging workforce, unskilled workers, independent contractors, and new technology, but with assessing these and other unknown risks.
What they’re doing: Insurers spoke of addressing these changes through underwriting and analytics, by developing new products, and by adapting pricing and underwriting. Some mentioned reaching out with public campaigns and employer education programs to promote a safer workplace.
Maintaining Profitability and Premium
What they said: Insurers are concerned about their ability to maintain profitability and premium levels that may be affected by changes in loss cost trends, legislation, and the economy.
What they’re doing: Many insurers are taking a hard look at premium levels and underwriting to remain competitive. Some are seeking opportunities to develop new products and new markets. Others are putting tighter controls on expenses and looking for greater efficiencies through technology.
Medical Costs, Advances, and Determining Appropriate Care
What they said: Medical costs, advances, and determining appropriate medical care are mentioned as major concerns and challenges by more than a quarter of the leaders interviewed. While rising costs remain a concern, insurers have somewhat “baked them in” to their expectations.
What they’re doing: Industry stakeholders closely monitor medical advancements to help maintain appropriate care for injured workers and improve return-to-work outcomes. Some insurers are introducing a variety of programs that go well beyond just paying for injuries, with an enhanced focus on workers’ overall health.
Political, Regulatory, Legislative, and Legal Environment
What they said: Insurers continue to be concerned about political volatility and the impact of new legislation. Compared to years past, however, there were fewer mentions of concern over federal involvement in the industry.
What they’re doing: The executives and their organizations stay close to the issues by monitoring legislative activity and working closely with trade groups.
The Future of the Workers Compensation Industry
What they said: Most of the challenges and concerns expressed going into 2018 remain relevant in 2019. The future of the workers compensation industry, opioid abuse and medical marijuana, and advancements in technology are all top of mind. New concerns for worker safety are tied to the hiring of more unskilled workers, distracted drivers, and the challenge of “under the influence” workers.
What they’re doing: More insurers are working to educate their stakeholders and the public on the benefits of workers compensation by highlighting how the industry has directly and indirectly influenced safer workplaces and better outcomes for injured workers.
Founded in 1923, the ultimate mission of the NCCI is to foster and promote a healthy workers compensation system. The organization accomplishes this through gathering and analyzing data, industry trends, as well as objective recommendations regarding insurance rates and loss costs.
