Workers’ Comp Carriers Are Preparing for the Future

At this year’s Novarica Insurance Technology Research Council meeting, I moderated a special interest group of workers’ comp insurers. The conversation spanned a wide range of issues, but a few key concepts dominated our discussion:

Impact of Emerging Tech/MedTech
As technology advances, including health care technology, insurers will have to decide what “disability” means—and whether workers can be classified as permanently disabled. With organs being replaced via 3D printer, mesh, and stem cell work and large companies like Amazon entering the insurance space, workers’ comp carriers will have to continue to evolve their offerings.

Data Consolidation and Analytics
As with other lines of business, insurers are working to ensure that their collection and analysis of policyholder data is efficient. Several participants reported experimenting with new methods of data collection, including directly from an insured’s payroll system. While these initiatives require carriers to navigate agents’ mistrust, insurers are seeking cleaner info to better target their services to customers’ needs. Participants also noted that one of the most important aspects of core systems replacement initiatives is optimizing data conversion of their own products.

Digital and Stakeholder Engagement
Most carriers are embarking on end-to-end digital endeavors to engage policyholders, agents, and internal stakeholders alike. One participant warned insurers not to think of digital solely as an external capability, but to think of it as an internal experience, too. Policyholders are the customers, but the agent experience should also be considered. Creating a seamless, data-infused experience across every touchpoint is often as simple as ensuring the company is seen as one single entity—sometimes that’s as simple as flipping how something is presented.

For more on these topics, check out our Business and Technology Trends: Workers’ Compensation report, or contact us at [email protected] to learn more about our research and advisory work with workers’ comp carriers.