Are you concerned about the future? Is your risk management program designed and prepared for changes in pricing, economic downturns, healthcare, changes in employment laws and the upcoming political elections? A broker or agent who cares about your business will be on the forefront of change. Part of providing outstanding customer service is helping clients understand how current and future trends may affect their risk program.
Every so often we think it is a good idea to talk about what may be happening regarding insurance and risk management. We review many different insurance publications, insurance company bulletins and other professional’s opinions, to analyze these trends. This allows customers to make educated and informed decisions about their individual programs.
What Is Going On That May Impact Your Risk Program
- Healthcare is still impacting individuals and businesses alike. Employers with less than 50 full-time employees are not subject to the mandate requiring a business to provide health insurance to employees or face penalties. It was good news for the 5.8 million businesses in the United States with fewer than 50 employees. Unfortunately for them, other rules imposed through Obamacare have a direct, negative financial impact on how insurance will be priced in the future. And the future is now.
- Increased reliance on technology will lead to better run insurers and stable premiums. The development of advanced loss control analytic tools will revitalize insurers focus on claim reduction, and potentially lead to increased investments in loss control. Insurers are using business intelligence to leverage “big data” to help them estimate claims, assets, credit and market data, and gain deeper insights across networks of producers, policy holders, and operations.
- There are more insurers entering the marketplace. While this can be a good thing, some of these insurers are not financially strong, which might lead to issues at a later date. We always recommend using stable and financially strong insurers.
- Mobile applications are one of the fastest growing areas of insurance. Businesses are able to manage risk programs through technology.
- Cyber liability will continue to be a major area of concern for all businesses. The government will continue to legally require businesses to protect customer’s information. Those businesses that don’t will be subject to increased fines.
- Global terrorism will impact local business. With the U.S. pulling out of the peacekeeping leadership around the world, the impact will be felt through increased attacks on American soil. Terrorism insurance will become more expensive and harder to obtain.