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.
Unpredictable severity mixes, unprecedented competition, litigation, and much more were all on our radar in the last 12 months as we worked with carriers of all sizes to grow their businesses.
1. Unexpected changes to severity and claim frequency
Just as the carrier industry adjusted to a 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 an increase in staff burnout and attrition, we were called upon to help several carriers augment their staffing. Through flexible staffing models, we helped carriers maintain excellent customer experience during difficult times.
2. Continued need for workers’ compensation
No matter where you conduct your business, workers’ compensation 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 to handle their own employees’ workers’ compensation claims. This resulted in our team assisting a number of regional carriers by alleviating pressure on their HR teams by handling all employee claims.
3. Variable vs fixed operating models
In the past year, we’ve all heard the phrases “agile” and “flexible”, 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 brands, supporting their go-to-market expansion strategies.
5. Subrogation and recovery
Recovering costs while maximizing resources is a common business goal that 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’ve set up a centralized subrogation department. The GB subrogation team comprises 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 not just to weather any storm ahead but also leverage more opportunity for your business.
To learn more about how GB can help your business grow connect with our dedicated Carrier Practice team.