United Kingdom
Close this search box.

Five Challenges We’ve Helped Clients Overcome in the Past Year

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. 

Gordon Vater

Managing Director – GB Technical

More Posts


Setting the Standard in Loss Adjusting

The past few weeks have seen adverse weather hit the UK, and floods pose unique challenges, demanding insurers tailor response plans specifically for these scenarios. As the UK contends with extreme weather conditions, we bring you five tips to preparing a robust storm surge support plan.

Read more

The Role of Collaboration in Compliance

Collaboration is the word of the moment when it comes to managing compliance related concerns, from cybersecurity and data breaches to consumer protection laws and regulatory reporting. As Beth Povey explains in this new article, the data reveals more than 40% of UK insurers are planning to leverage external expertise to ensure they remain compliant.

Read more

Elevating Strategic Decision-Making through Data Insights

Data is key to transforming your strategic decision making. Dive into how Gallagher Bassett’s Senior Business Development Manager, Stephen Bevan, is enhancing confidence in data-insights to help client partners achieve their objectives. Explore our proven practices that ensure you can harness advanced data insights.

Read more

Introducing the Carrier Perspective for Your 2024 Outlook

We are excited to launch “The Carrier Perspective: 2024 Claims Insights” whitepaper. Based on a global survey of 150 carriers, delve into the transformative shifts impacting insurers, from technology advancements to regulatory changes and global trends. The Carrier Perspective is a comprehensive exploration that offers invaluable insight into trends, challenges, and opportunities to drive success for carriers this year. Read on to stay ahead of the curve in 2024.

Read more

Keep your finger on the pulse of the latest industry news and insights.

Sign up to our monthly newsletter today.

Download Our Global Insurance Industry Whitepaper

Hi there!

Want to drop us a line?  You can get in touch by filling out the form below and we’ll get back to you as soon as possible!