To help employers prepare and capitalize on opportunities in 2018, Sedgwick has identified key trends that are likely to impact risk management and benefit decisions.
These key trends fall into the following five categories:
|No. 5: Compounding global risks.
An unusually high number of natural disasters in 2017 underscored the need for organizations to have strong disaster recovery plans. Hurricanes, floods and wildfires cost the industry billions of dollars; the recent California mudslides are adding to that total. As a result, underwriting performance is tested, resources to restore supply chains are stretched, and timelines for rebuilding infrastructures to resume normalcy are impacted.
It is critical for organizations to establish a strategy and partnerships that support an effective business continuity plan. Preparation and action must occur before, during and after a catastrophe if an organization is going to recover and resume operations swiftly. The increasing frequency and severity of these disasters and other emerging risks emphasize the need for preparedness worldwide.
|No. 4: Shifting tide of policy.
Organizations can expect to see expanding leave programs as they face increasing demands to help their employee population care for their own health and the health and welfare of their families.
Parental leave, caregiver leave and other paid leave programs are increasing in number and complexity, and provide unique and ongoing challenges for businesses in the areas of workforce planning and productivity.
Several states are introducing new paid leave bills and others are clarifying and expanding regulations for leave benefits, continuing a trend from the past four years, particularly in states with large workforces in technology firms. States including Arizona, California, Georgia, Illinois, Maryland, Minnesota, Nevada, New York, Pennsylvania, Rhode Island and Texas have introduced new or expanded leave bills.
|No. 3: Bridging the gaps.
Throughout 2018, organizations will seek ways to bridge gaps in knowledge and service based on changing business needs. In today's customer-centric society, many demands can be fulfilled by a few clicks on smart devices. Changing consumer behavior towards consumption has been driven by advancement in technology, and the infusion of machine learning capabilities and advancing artificial intelligence.
The race toward self-service innovation and the growing desire for on-demand consumerism continue to push organizations to provide immediate resources to their customers.
More than 70% of Americans now use a shared or on-demand service, according to the Pew Research Center. In addition to self-service, machine learning is advancing many capabilities by automatically sifting through mountains of data, thereby allowing service providers to detect patterns faster and formulate valuable insights to improve the quality of service and customer experience. The impact of the changing environment in self-service for risk and benefit managers is evidenced in the growing need for just-in-time services and customer service that parallels other areas.
The movement toward a whole health approach increases trust and engagement, and places less influence on individual providers in favor of a more holistic consensus view of treatments and interventions. (Photo: iStock)
|No. 2: Leveraging interdisciplinary care.
In the changing world of healthcare, we see centralized support linking cross-disciplinary teams with a common goal of providing quality care. As more employers embrace principles of advocacy, empathy and responsiveness within a whole health environment, organizations can look forward to continued improvement in the consumer experience and stronger physical, emotional and financial health for employees.
Organizations can also expect to see a continued push to strengthen connections between risk management, human resources and corporate leadership by embracing integrated programs as they address the shared challenges of healthcare, return to work and ADA compliance issues. In addition, the importance of data connectivity within organizations and across providers will continue to grow as organizations work to avoid information gaps, optimize care, and avoid potential dangers.
As the lines between risk management and human resources blur, employers must be more adaptable in addressing such issues as ADA and return to work in a cohesive manner. More progressive organizations are finding that consistency across types of leaves creates greater opportunity for improvements and reduces compliance, lawsuit and fine risks.
Related: 5 key insurance trend predictions for 2018
|No. 1: Improving experience through technology.
Technology allows employers to engage workers throughout their recovery — maintaining better connections while they are away from work and making the claims process easier for them to understand. Our industry is focused on the care and needs of consumers, and using technology to offer better and easier communication, improved access to on-demand support, and resources aimed at improving the claims experience. Increased consumer satisfaction is leading to accelerated return to productivity and better overall health.
Telemedicine and other remote access offerings will continue to move toward a standard instead of an exception. Increasing use of telemedicine is connecting patients with the right provider for initial and follow-up treatments for minor injuries and illnesses. Instant two-way communication is easier than ever throughout the recovery process. Among its most notable advantages is fast, convenient care regardless of distance, traffic or other geographic impediments. A well-structured program offers consumers a sense of empowerment and more active engagement in their own healthcare.
Chatbots and avatars will become more prevalent as support and service options for all lines of business. Employers see potential for use of these tools as virtual health coaches for workers' compensation, disability and wellness programs. The key question before employers is what are the possible advantages, limitations and liability risks of these cutting-edge virtual assistants.
2018 is off to a fast start. While hurdles and challenges will surface along the way, preparation is essential. A renewed focus on disaster recovery and business continuity plans, expanding leave programs, the increasing use of self-service innovations, a growing reliance on interdisciplinary care, and improving experiences through technology are expected to impact risk management and benefit programs. Advanced preparation and planning will enable employers to not only anticipate these developments but fully capitalize on opportunities they present.
Kathryn Tazic is a managing director of Client Services National at Sedgwick. To reach this contributor, send email to [email protected].
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