Understanding ever-evolving business trends and how they impact the workers compensation line of business is critical for independent agents to provide the best possible coverage for their clients.

“Agents have a really important job; they're the lifeline between businesses that need coverage and carriers that can supply the need," says Mort Large, workers comp line of business lead, Nationwide. 

As the business sector continues to develop with new technologies, such as artificial intelligence (AI), which is taking safety and loss management tools to new levels, agents can add value to that relationship via numerous paths.

Here are four ways agents can assist their workers comp clients in an evolving business environment:

1) Develop relationships. “From my perspective, the first ongoing differentiator is creating and developing the relationship itself—through accessibility, responsiveness and understanding," Large says. “A chat or an internet search can provide a client or potential client with information. Yet, neither can provide the assurance or the personal touch of a licensed professional agent." 

Further, with the advent of new technologies and remote work, post-COVID-19 changes in employment locations where multi-state contracts are in force can place the independent agent in a prime position to offer advice for a more complex business environment. 

2) Deliver value. “Much of the value delivered through a workers comp program is the added services that help businesses take a cohesive approach to minimize risk both pre- and post-claims, including risk management offerings such as safety training and ergonomic assessments," says John Lacy, vice president of workers comp, The Hanover. “Taking a holistic approach to risk management and safety, and being able to refer to risk mitigation programs, can prove to be real differentiators in this line of business." 

Agents can offer those services and programs by working with reputable, experienced carriers. It is imperative to “seek out carriers that provide quality loss control services and claim services," says Jeff Cole, head of national accounts, Sentry Insurance. “With the upward pressure from medical inflation, preventing losses from happening and effectively managing those that do happen is imperative. Treating the injured employee holistically is an important aspect of controlling costs and, just as importantly, it's the right thing to do."

An experienced agent will also offer clients the benefit of their years in the industry by “doing business with carriers that have the history and financial strength to fulfill promises," Large says. “One would typically not save for retirement in investments that did not have a high degree of likelihood of having value several decades in the future. Likewise, it is important to do business with carriers who will be able to fulfill promises financially by paying claims, which may not manifest for years."

3) Technological awareness. Advancements in technology are fueling safety and are playing a major role in the workers comp market.

“There are several new loss mitigation technologies entering the market that could prove beneficial to policyholders looking to take their risk mitigation efforts to the next level," says Dale Hoppe, vice president of workers comp excess & surplus and specialty programs for Nationwide. “Wearable technology has been proven to reduce high-risk postures that lead to sprain or strain injuries. Additionally, AI that analyzes camera footage is identifying poor ergonomics in the workplace and pinpointing hazards that could lead to workers compensation injuries."

4) Identify service gaps. “While not a new condition in this market, an area that is always important to keep near the forefront when talking to insureds is the use of any independent contractors," Large says. “This exposure can be present in a variety of industries. Further, since state laws and court decisions on this topic vary, talking through the details with insureds about the nature of the relationship between the worker and business is a worthwhile endeavor." 

Additionally, the way we work has changed significantly for many since the COVID-19 pandemic. “With workers being able to telecommute or work from many new locations, policy construction fundamentals and truly verifying 3A and 3C states should be foundational to writing workers comp business," Lacy says. “There is also a resurgence of working outside of the U.S. and the limitations of domestic workers comp policies should be understood."

Olivia Overman is IA content editor.