Our team shares the highs and lows of increased competition, modelling changes, and an enhanced severity mix as we wrap up the past twelve months. This is our reflection on the year that was, and the ongoing challenges our industry must address in the year to come.

Five challenges we’ve helped clients overcome in the past year 

Unpredictable severity mixes, unprecedented competition, litigation and much more were all on our radar in the last twelve months as we worked with carriers of all sizes to grow their business. 

 

1) Unexpected changes to severity and claim frequency 

Just as the carrier industry adjusted to the spike in workers’ compensation and casualty claims from the COVID-19 pandemic, we started to see changes in the severity of auto, travel, and business interruption claims. As a worrying trend in high-speed, high-impact crashes coincided with economic downturns and increase in staff burnout and attrition, we were called upon to help several carriers augment their staff. Through flexible staffing models, we helped carriers maintain excellent customer experience in difficult times. 

 

2) Continued need for Workers' Compensation 

Workers’ Compensation, no matter where you conduct your business, continues to be at the core of the U.S. carrier industry. While we did see a change in claim type, with more work from home related musculoskeletal injuries, we also saw an increase in carriers seeking the help of a TPA in handling their own employee workers’ compensation claims. This resulted in our team assisting a number of regional carriers, by alleviating pressure on their HR team by handling all employee claims.  

 

3) Variable vs fixed operating models 

We’ve all heard the phrases ‘agile’ and ‘flexible’ in the past year, but they’re more than just buzzwords. The past year saw many carriers convert from fixed to variable expense models to better accommodate the competitive market and meet growth demands. We assumed a book of legacy claims to help a carrier convert from fixed to variable and worked with an international carrier to develop a new business-owner policy when they wanted to free up capital by investing in a variable model.  

 

4) A rapidly growing industry 

Despite the global shutdown, the insurance industry continued to experience modest growth, but many carriers were faced with the challenge of resourcing new geographic locations they weren’t able to safely access. We stepped in to help several carriers expand their lines of business and enhance their brand, supporting their go-to-market expansion strategy.  

 

5) Subrogation and recovery 

Recovering costs while maximising resources is a common business goal we see carriers striving to achieve. But we know the ability to pursue subrogation is often a challenge for claims teams with an active caseload, so we have set up a centralised subrogation department. The GB subrogation team is comprised of experts in chasing recovery opportunities so desk-level claim handlers and carriers can focus on their core business.  

 

So, what’s next? At GB, we have our eyes on the horizon with the backing of decades of data and insights to guide your next step. Choose GB as your strategic partner to not just weather any storm ahead, but leverage more opportunity for your business. 

 

To learn more about how GB can help your business, connect with our experts today. 

Blog Author

Gordon Vater

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