2022 Workers’ Compensation Insurance Market Outlook

workers' compensation

Unlike other lines of coverage, the market for workers’ compensation insurance has remained stable across most states and industries, performing as an outlier by producing profitable underwriting results. According to the National Council on Compensation Insurance (NCCI), the private carrier combined ratio for workers’ compensation in 2020 carriers was 87, up from 85 in 2019, marking the seventh consecutive year of underwriting profit.

Nevertheless, there are still trends that could pose concerns within the market for 2022—such as COVID-19 risks, widespread labor shortages, and a rise in mega claims. Looking ahead, we predict that workers’ compensation rates will remain stable, with some organizations experiencing rate decreases and others seeing minimal rate increases.

Developments and Trends to Watch

  • Wearable safety technologyIn an effort to minimize employee injuries and subsequent workers’ compensation claims, many organizations have turned to wearable safety technology in recent These devices can help monitor employees’ behaviors on the job, alert them of hazardous situations and provide real-time safety instructions—thus promoting a safer work environment, mitigating injuries and lowering workers’ compensation costs. According to ABI Research, the wearable technology market is projected to reach $60 billion by the end of 2022.
  • Telemedicine offerings—Telemedicine, which allows employees to receive medical services virtually after they’ve been injured on the job, has continued to rise in popularity over the Especially amid the ongoing COVID-19 pandemic, telemedicine has become an increasingly attractive option for employees to receive medical services without physically visiting a doctor’s office or navigating limited clinic availability. In fact, 25 states either added or expanded telemedicine offerings for treating occupational injuries due to the pandemic, the Workers’ Compensation Research Institute reports. What’s more, a recent survey found that 83% of patients who currently use telemedicine plan to continue doing so even after the pandemic ends.
  • Qualified worker shortagesThe U.S. Bureau of Labor Statistics confirmed there were more job openings available in 2021 than there have been in the last two decades. Due to these labor shortages, many employers have begun hiring a large number of inexperienced Yet, this practice comes with workers’ compensation risks; employees with less than five years of experience contribute to 43% of workplace injuries, according to a recent survey conducted by the Golden Triangle Business Roundtable in Texas. This is likely because such workers often lack years of safety training and may be more willing to take unnecessary risks.
  • Mega claims—A mega claim is an exceptionally large claim, totaling $3 million or more incurred in the scope of workers’ compensation, these claims typically stem from employees experiencing severe (and possibly permanent) injuries on the job. The NCCI reports that mega claims have reached a 12-year high—increasing in both frequency and severity.

2022 Price Prediction

Overall: -2% to +5%

Tips for Insurance Buyers

  • Enforce workplace health and safety measures to help protect your staff from COVID-19 exposure and limit the likelihood of related claims.
  • Implement safety and health programs to address common risks, especially when using a loss-sensitive workers’ compensation
  • Consider implementing various digital solutions—such as wearable safety technology and telemedicine—to help prevent and treat injuries within your workers’ compensation program.
  • Develop an effective return-to-work program that properly supports employees in the process of healing from a work-related illness or injury and resuming job duties following their recovery.

At Midwest Insurance Group we work hard to build trusted relationships with our customers. We strive to make you feel both comfortable with and confident in our abilities by acting as your consultant. We are an organization dedicated to our customers. We seek out the best companies that offer the appropriate coverages at a fair price. Call us today at 262-646-5777.

Quick Ways To Save On Your Insurance Costs

insurance costs

It seems like everything in your life is going up, up, up. But your insurance doesn’t have to follow suit. While we can’t control rates or the market as a whole, we can give you some sure-fire ways to keep those costs low through discounts and best practices.

Because let’s face it, we’re all looking for ways to cut costs right now.

That doesn’t mean we have to cut coverage, though, as that could leave you exposed if you have an accident.

Try the following tips before you tighten your insurance belt:

  • AutoPay — Everyone likes steady money. Insurance companies are no exception, and they give discounts for automatic monthly payments.
  • Payment in Full— Same principle as autopay, except this is an even better discount if you have the cash to pay the price of the policy in one payment in full.
  • Multi-Policy — This is the big one. Combine home and auto for the biggest discounts of all. If you’ve got both, switch them to one carrier and do your wallet a favor.

These simple little tricks can help you obtain 5, 10, even 15 percent off of your total policy premium.

Enjoy the savings, and best of luck in this wild economy!

We at Midwest Insurance Group work hard to build trusted relationships with our customers. We strive to make you feel both comfortable with and confident in our abilities by acting as your consultant. We are an organization dedicated to our customers. We seek out the best companies that offer the appropriate coverages at a fair price.

Simple Cyber Security Tips To Protect You Online

cyber security

If you’re reading this, you’re online. Nearly everyone is now, from kids with phones to grandmas looking at those kids on social media.

Unfortunately, if you’re online, you’re also vulnerable to cyber-attacks. Everything from email scams to ransomware attacks is possible if you aren’t careful.

Luckily, being careful is easier than ever. Planning ahead and making a few simple changes can have a huge impact on how likely you are to experience an attack.

To make sure you’re secure online, try the following:

  • Beef Up Those Passwords — Yes, it’s annoying to change them. But change them regularly, make them longer, and use different types of symbols and punctuation.
  • Build That Firewall — Use antivirus software on your devices. There are free options and paid options. Feeling techy? Use a VPN to be even safer.
  • Check Yourself — Not sure if you’re secure? Check your info at http://haveibeenpwned.com/ to see if you have been part of a data breach.

Having your information out there can be scary. Luckily, a few basic changes can make a huge difference in you surfing the web confidently.

Now, where are those cute kitten videos?

At Midwest Insurance Group we work hard to build trusted relationships with our customers. We strive to make you feel both comfortable with and confident in our abilities by acting as your consultant. We are an organization dedicated to our customers. We seek out the best companies that offer the appropriate coverages at a fair price.

Insuring Your Business Against Cyber Liability

Cyber

According to one study done by the US Small Business Administration, 88% of small business owners feel their business is vulnerable to a cyber attack.1 These concerns may be well-founded: according to another study, 46% of all small businesses have at some point been the target of a ransomware attack.2

Business owners are required to protect their customers’ personal information. In all 50 states, Guam, Puerto Rico, The Virgin Islands, and the District of Columbia, businesses are required to notify individuals of security breaches involving personally identifiable information.3

As evidenced by news of large-scale data breaches, online hacking has become another form of risk that businesses now face every day. Like many risks, businesses can insure themselves against the financial damage a cyber-attack may inflict.

Cyber liability insurance may cover a range of risks, including:

  • Data Breach Management: Pays expenses related to the investigation, management, and remediation of an incident, including customer notification, credit check support, and associated legal costs and fines.
  • Media Liability: Covers third-party damages such as website vandalism and intellectual property rights infringement.
  • Extortion Liability: Reimburses for expenses associated with losses arising from a threat of extortion.
  • Network Security Liability: Covers costs connected with third-party damages due to a denial of access and theft of third-party information.

Cyber liability insurance is fairly new so expect a wide divergence of coverage and costs. It may be purchased separately or as a rider to your current business insurance policy. Be prepared to comparison shop to get a better understanding of coverage and costs.

Small business owners might also keep in mind that “an ounce of prevention is worth a pound of cure.” There are steps you can take to protect your business from becoming a cyber victim.

Consider these steps to protect your data.

  1. Maintain robust malware detection software and keep existing software updated.
  2. Train employees not to open links contained in emails from unknown senders. Research shows that 30% of security-related incidents are caused by internal actors.4
  3. Encrypt your important data, such as bank account information, customer credit card numbers, etc.
  4. Perform a security audit.

As obvious and simple as these precautions may sound, some businesses fall victim to cyber-attacks because of their failure to take them.

  1. SBA.gov, 2021
  2.  StaySafeOnline,org, 2020
  3. National Conferences of State Legislatures, 2020
  4. SmallBizTrends.com, 2020

For a free consultation with an experienced insurance expert, contact the Midwest Insurance Group here or call 262-646-5777.

 

Winter Months Are Upon Us Now

winter safety

While the weather outside may not yet be frightful, the winter months are upon us. And for many of us, that means freezing weather.

Even if you want a snowy Christmas, certain risks arise when snow, ice, or freezing rain are present.

And if you think this doesn’t apply to you, keep in mind that Texas was the hardest hit state for winter weather claims earlier this year!

Luckily you can ward off the worst with a few simple tips:

  • Auto-snowmobile — Transform your car into a safe winter transport. Obtain snow tires or chains, make sure to regularly service your vehicle, and have an emergency kit in case you get stuck
  • Heavy Snow — A surprisingly common claim is collapse due to the weight of ice and snow. MOST policies cover this but make sure roofs and porches are in good condition
  • Back It Up — Power loss is common during big storms. Consider getting a backup generator or a backup heat source. Also, check your policy for Spoiled Food coverage if your refrigerator goes out

You’ll be snug as a bug in a rug and cozy with confidence that you and your family are safe – no matter how the wind blows.

For a free consultation with an experienced insurance expert, contact the Midwest Insurance Group here or call 262-646-5777.