Calls to action for workers' comp insurers

Here are some actions insurance carriers can take now to possibly help mitigate risk, protect their brands, and respond to market shifts:

Practice prudence in underwriting. Carriers should look to shore up their risk selection standards and pricing models. Underwriting profitability could be paramount to remain viable, particularly in this low interest rate environment, when investment income is likely to be impacted as well.
Align with the 'new normal.' Remote working will likely increase and remain in place for substantial numbers of covered employees. Insurers should be flexible and adapt their policies (and their own workforce and operations) quickly to changing work environments.
Accelerate claims efficiency. With expense control becoming even more important, insurers should accelerate efforts to arm their claims departments with state-of-the-art technology tools. Artificial intelligence and advanced analytics, for example, can help insurers improve the speed, efficiency, and accuracy of underwriting as well as claims management decisions.
Manage reputational risk. Carriers should also focus on managing potential reputational risks in the midst of the pandemic by continuing to demonstrate social responsibility and empathy for clients, claimants, and society at large. This may include using analytics to better anticipate client needs, providing positive experiences in managing claims, and remaining flexible with coverages and payment plans.

For more information about Deloitte's forecast methodology, as well as our forecast for other lines of business, starting with homeowners' insurance, to be followed next month by commercial and personal auto insurance, go to the Deloitte Insights COVID-19 impact forecasting site.

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COVID-19 to have lasting impact on workers' comp premiums

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