Each year in January insurance executives Kimberly George and Mark Walls present a webinar with their list of top issues for the year ahead. Here is their list for 2024.
- National and state elections will affect policies for businesses and individuals.
- Economic growth is likely to slow, and the property insurance market will be challenged.
- Geopolitical risks - in addition to Ukraine and the Middle East there may be conflict with China over Taiwan.
- Employee benefit programs will continue to expand.
- Workers compensation claim frequency rates are increasing, reversing a recent trend.
- Climate change creates heat related problems. Low rainfall has reduced water levels in the Panama Canal leading to shipping delays.
- Medical inflation is increasing workers compensation costs. (An exception in Pennsylvania; Commonwealth Court has ruled "Red Book" prices for drugs are artificially high and cannot be used to calculate average wholesale price as required by law.)
- Property insurance rates will start to stabilize, but risk managers must make facilities more resistant to climate change.
- Liability verdicts continue to increase, and tort reform is slow to address them.
- Leave and accommodation programs are expanding. New legislation and regulations will affect benefit plans.
- Liability claims exceeding primary limits may lead to problems if excess policies have different terms and conditions. This could lead to bad faith claims.
- Insurers will need to increase claim reserves because of a variety of factors.
- ESG regulations will tighten in some jurisdictions with others opposing them.
- With more job openings than workers, businesses will use new strategies to find employees. Salaries will increase.
- Presumption laws may expand.
- Cyber attacks continue to increase and a government backstop to cyber insurance may be needed.
- Workplace violence continues to increase; employers must focus on safety.
- Employee mental health and well being are increasingly important.
- COVID-19 cases may challenge the workers compensation exclusive remedy.
- AI has the potential to change underwriting, claims and service. By expediting settlement of low dollar claims it can improve human interaction.
The full post is at https://www.insurancethoughtleadership.com/commercial-lines/20-issues-watch-2024.