Current economic and medical trends could have a huge impact on workers’ compensation insurance in the years to come. Some of the shifts may bring positive change, and some may create serious problems for the industry.

• Digitization – many industries have recently made tremendous progress in using Internet and mobile records online. They also have the ability to discuss medical issues with physicians via email. For example, specialized mobile apps could expedite claims.
• Income levels – even when people spend increasing amounts of WC funds on medical services, wages have continued to grow rather slowly since 2008. Employees can no longer count on significant raises. This affects workers’ compensation because steady premiums become unsustainable when the medical costs rise.
• Telecommuting – more and more people perform their jobs in home offices or carry out other off-site tasks. Although this often cuts commuting costs, etc., it is harder for employers to maintain a safe work environment. Moreover, it is more difficult for employees to prove the injury occurred on the job and to file a WC claim.
• Improving safety – federal regulations have greatly reduced workplace injuries in recent decades. The government has also begun to criminally prosecute bosses who create hazardous working conditions that trigger fatalities. Safer equipment and vehicles help to prevent injuries and claims as well.
• Terror attacks – recent events in UK and France show that terrorism remains a serious threat. Many insurance companies exclude terrorist attacks even though the Terrorism Risk Insurance Program, a federal law, requires WC insurances to cover every job-related injury.
• Generations – fewer young people are joining the workforce than they did in the past. Although some insurance professionals worry about aging staff members, these workers don’t appear to be making more claims than younger individuals. The problem is that middle-aged employees have begun to suffer increasing severe injuries. They frequently develop long-term disability and sizable expenses.

To remain successful, WC insurers must find ways to adapt to evolving technology, demographics, and workplace hazards. They can benefit from the positive trends yet it remains crucial to prepare for changes that could introduce new risks. If you or loved one has been injured on the job, Call The Poirier Law Firm for a free consultation to make sure all of your rights are protected. You need someone in your corner!