The future of Work has changed forever due to the introduction of new employment models, the digitalization of the workplace, and changes in state and federal regulations. To succeed in this new dynamic, ever-changing environment, insurance companies, MGAs, and carriers, who provide Workers Compensation Insurance to businesses, need to increase their speed, agility, and flexibility. The deployment of modern, agile, and flexible digital solutions for the sales, distribution, and administration of Workers Compensation Programs is a critical requirement for Insurance Providers.
The future of work has changed forever. The challenges are the same, whether we call it the New Normal or just a new way of working. For most of us, remote working is a reality, and the 9 to 5 / Monday to Friday days in the office are gone. The advent of the GIG economy is also creating new work practices as people opt to work for themselves as independent contractors where short-term contracts are the norm, hourly rates dictate payment terms, and employees move between multiple employers. A hybrid model is likely to be the working model for the majority.
In addition, a transformation in the capability of real-time Artificial Intelligence and Machine Learning applications is driving the emergence of a smarter workplace. Intelligent devices, IoT, and telematics are gaining traction on the shop floor producing large amounts of data that is being used to analyze and improve safety at work. This Digital Explosion has added a new automated dimension to the workplace in parallel with these new working models. The result is the emergence of a safer environment that delivers better services, increased productivity, automation of business processes, and the refinement of work practices.
If this isn’t enough disruption, federal and state legislation is increasing the regulatory reporting burden, making it more complex, demanding, and time-consuming. These additional regulatory reporting requirements put more pressure on insurance companies’ operational systems. Changes in the legal framework, such as legalizing marijuana use in some states, impact the working environment, and insurance companies need to incorporate these changes into their Workers Compensation policies.
So, what does all this change mean for Workers Compensation insurance providers? The total gross written premium for Workers Compensation in the United States is approximately fifty billion dollars. Analysts project that this figure will grow to over sixty billion in the next five years. Workers Compensation continues to represent an excellent opportunity for growth. However, to leverage this opportunity, insurance companies will need to achieve the business flexibility and agility required to react to this rapidly changing environment. Insurance players with this business agility will win, and those who do not will struggle to survive.
Workers Compensation and the future of Work is a massive opportunity if you are ready, and that state of readiness needs to be built on the right Digital platform.
At CodeEast, we have built an omnichannel, cloud-native Digital Insurance Platform operating in the Microsoft Azure cloud. We are ready to help insurance companies with this challenge for Workers Compensation.