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April 21, 2022

Industry Challenge

Chip Shortages’ Long-Term Impact on Insurance

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What: The disruption of the manufacturing and supply of computer chips has had some truly widespread effects – impacting everything from PlayStations to pickup trucks. The fallout is pushing some industries to their limits, and insurance is not immune to these challenges, as sensors and chips are a central resource to data-powered insurance. 

Why it matters: Insurance is experiencing a rise in unpredictability compared to the previous decade, and unforeseen risks cause unexpected losses. The chip shortage is just one example of many unforeseen risks that are highlighting the growing need for adaptability in insurance. One way insurers are addressing this challenge is through variable exposure and usage-based coverages. 

Read: 6 INSURANCE MARKET CHANGES THAT REQUIRE NEW BILLING MODELS

Workers Comp

Optimizing Hybrid-Work

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What: A recent study by the Harvard Business School shows that 1-2 days in the office per week is the sweet spot for remote work productivity. In the study, the workers in that sweet spot showed significant increases to both creativity and productivity, though the study was limited to only 130 workers. 

Why it matters: Just like the chip shortage, our current working culture is hard to predict and creates a variety of risks that will need to be adapted to. Variable exposure coverage helps mitigate the challenges of an evolving workforce.

Read: One or Two Days in the Office Is the ‘Sweet Spot’ of Hybrid Work

Industry Challenge

Workers Comp Risks for Remote Workers

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What: Remote work workers comp claims are a growing risk for hybrid work, and most companies haven’t yet taken the time to implement appropriate loss prevention measures. With so many more people working from home, the potential risk is one that shouldn’t be ignored. 

Why it matters: Tripping over a dog is a risk not calculated into most Workers Comp policies and isn’t needed in the office (unless your company has a mascot!). Underwriting for Workers Comp will need to evolve its understanding of different work environments to price risk appropriately.

Read: How to avoid workers’ comp claims with your hybrid workplace – The Business Journals

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