The insurance industry has long been looked to with an expectation of prescience in managing and helping mitigate risk. When it comes to assisting in loss prevention, reducing or eliminating claim costs, and ascertaining market conditions—as an industry, we’ve spent decades and even centuries perfecting the ability to predict and model.
But even for tech-enabled insurers like Foresight, who are moving the needle further than ever before, we must keep pace with new and emerging risks. It’s responsible and fair to ask ourselves, “Have we built the right tools to help customers handle what’s ahead for them?”
We are confident that the outlook for this year is strong; and that Foresight’s balanced approach of technology and unparalleled claims frequency reduction, sets our brokers and clients up for success. Let’s take a closer look.
The workers’ compensation market: opportunities and challenges
For insurers, workers’ comp was one of the most profitable lines in 2022 and is trending positively for 2023, a positive indicator that this product is being well-managed and adequately priced. But taking a realistic, big picture perspective, businesses need to be mindful of how increased claims frequency can hurt their day-to-day operations and costs and ding their experience modifier (ex-mod).
While some policyholders have benefited through greater availability and lower rates, others—like small-to-mid construction companies, manufacturers, and agricultural growers who make up the backbone of our economy—remained at the mercy of their ex-mods. This means that one or two claims can haunt a business for years from a pricing perspective if you are working with a traditional workers’ comp carrier. Foresight takes a different approach—more on that in the next section.
On a human level, our hardworking clients are facing widespread labor shortages, skilled workers aging out of the workforce, and the consequences of workers being busier than ever (which leads to stress, mental strain, increased likelihood of injury, to name just a few factors). Smart businesses need to be mindful of countering increased risk factors. This is where a tech-enabled partner with safety-centric approaches, like Foresight, comes in.
How Foresight positions businesses to respond to challenges
The good news is, a solid tech-enabled and innovative workers’ compensation partner like Foresight will help brokers and clients navigate these challenges.
Specific to the factors that threaten to increase claims frequency, Foresight is pushing back. Our 17% claims frequency reduction is pivotal in helping our broker partners make a meaningful difference to clients in core industries like construction, manufacturing, agribusiness, and landscaping. We can achieve this result in as little as one year, and we can do this for even our higher-ex-mod clients.
Our data shows that we also achieve ex-mod reduction for many of our new clients more quickly than remaining with their incumbent. We use the power of our proprietary safety program, Safesite, which encompasses technology and white glove safety consulting services, so we are able to rely on 360 holistic data about our clients to drive pricing while helping improve safety culture and behaviors.
Insurance that helps eliminate needless costs while enhancing a client’s safety program over time—that is part of the difference of working with a true tech-enabled partner, and a sound decision for the wellbeing of workers and the sustainability of a business.
What’s next?
We know we need to keep pushing to deliver on our mission: a future where workplace injuries are a thing of the past. So here’s what we’re working on now to make this a reality:
- Bringing our approach to even more states and regions in 2023, our outlook is that the clients working with the right brokers and securing innovative coverage will be ready to face many of these challenges—and opportunities—head on.
- We’ve expanded filings to include Georgia, North and South Carolina, and
- We’re opening for business in select Northeastern states and Colorado.
Looking ahead is right there in our name, and Foresight is ready to help more brokers make 2023 the year they helped their clients become a safer and more prosperous business.
