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October 28, 2021

Industry Challenge

Return to normal for pilots is not smooth sailing

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What: The Federal Aviation Administration has reported a surprising uptick in pilot error, which has resulted in many barely avoided disasters. The reduction in flight hours and increase in sabbaticals caused by falling demand during COVID has decreased the recent experience of these pilots and could be hinting at future aviation concerns. 

Why it matters: Pilots are just one of the more visible examples of the effect of breaks and reduced hours during COVID. The workplace and experience changes triggered by the pandemic are a problem for all kinds of employees, from truck drivers and forklift operators to surgeons and accountants. There’s a high likelihood that human error will be greater as we return to normal. 

For airline insurance, this presents an innovation opportunity in pricing insurance, because coverage is currently based on the plane. But with data evolving, we could see ratings improve based on pilot information and experience.

Read: Up in the Air, Out-of-Practice Airline Pilots Are Looking Error-Prone

Industry Challenge

Workers haven’t yet fully returned, and it’s slowing the economic recovery

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What: During the pandemic, Americans saved trillions of dollars. Those savings, coupled with increased employment opportunities, are giving workers the opportunity to be more selective about their work and take their time getting back to the daily grind. 

Quote: “It’s like the whole country is in some kind of union renegotiation,” said Betsey Stevenson, a University of Michigan economist who was an adviser to President Barack Obama. “I don’t know who’s going to win in this bargaining that’s going on right now, but right now it seems like workers have the upper hand.”

Why it matters: Reduced hours have an interesting impact on liability insurance, security, and workplace violence. When you only have a limited number of people, will safety and compliance be prioritized? If not, what does that mean for workplace safety exposure?

Read: The Economic Rebound Is Still Waiting for Workers

Industry Challenge

Allstate is selling its HQ and embracing remote work

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What: Allstate is a top-5 insurer, and its embrace of remote work shows just how much the pandemic has transformed our working environment. 

Why it matters: This shift in how we work is going to create new opportunities for insurers. One good example of this is RLI’s Home Business Insurance Coverage, which helps small, home-based companies get the coverage they need to run smoothly. 

Read: Allstate selling suburban Chicago headquarters amid remote work

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