Boston, MA – In a fragmented market with high sensitivity to state regulation, workers’ compensation insurers are looking to maximize profits through operating efficiencies, underwriting insights, and product development. Top priorities to meet current and near-future challenges include improved agent portals, core system replacement, implementation of business intelligence capabilities, and growing use of specialized components. In its latest report, Business and Technology Trends: Workers’ Compensation, research and advisory firm Novarica provides an overview of workers’ compensation carriers’ business and technology issues, data about the marketplace, and 70 examples of recent technology investments by workers’ compensation insurers.
“Emerging technologies are allowing advanced insurers to encourage client behavior that will reduce and prevent loss. This is done through a combination of traditional employer education combined with the adoption of integrated monitoring and automation,” said Jeff Goldberg, Senior Vice President of Research & Consulting at Novarica, and lead author of the report. “The Internet of Things, combined with drones, GPS, RFID badges, telematics, and video surveillance, means most companies will soon have ‘smart offices’ or ‘smart worksites.’ With all these modern sensors connected to a central database, businesses and insurers will be able to protect themselves and reduce risk.”
Key findings of the report include:
- Tighter margins mean pricing and loss avoidance/mitigation are critical. Declining rates and increasing severity mean more granular segmentation is needed; loss avoidance and mitigation are key.
- Investments in claims administration systems offer improved operational effectiveness and quality of claims service. Claims service is a key policyholder interaction.
- Carriers are operationalizing predictive analytics and leveraging drones, sensors, and wearables. The emphasis is on using these technologies to avoid or mitigate losses.
The full report is available online here: Novarica: Business and Technology Trends: Workers’ Compensation