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Challenge For Workers Compensation Top 10 Areas 2014


Areas of Challenge For Workers Compensation System = Future

A very great list of the Top 10 Upcoming Challenge For Workers Compensation was published recently by the Insurance Journal,  Check it out here.  The Top 10 list was (with a quick explanation).

Graphic of Challenge 4 Workers Compensation Shadow of Man Climbing Mountain

BTW, I agree with them wholeheartedly:

  1. Wage and salary stagnation – need payroll growth for premium growth
  2. Technology and innovation – WC industry lags in this area
  3. Opioid abuse – hot button
  4. Marijuana in the workplace – another hot button and will get even hotter
  5. Manufacturing – new growth = new injuries
  6. Affordable Care Act – goes without saying
  7. Terrorism – long term concern
  8. Workplace Safety– increasing regulation = increasing safety
  9. Mobile Workplace – a curse and a blessing
  10. Worker Demographics – Younger workforce has a dwindling supply of workers

My Top 10 areas of challenge are:

  1. Harder market – without investment returns, WC cannot sustain lowering price pressures
  2. Captives/Alternative Insurance – every company wants out of the current WC system but is that decision going to pay off in the long-term?
  3. States that have legalized marijuana – now what does that do for the workplace?
  4. Employers need to monitor next year’s premium, see #1 in the first list and this article
  5. Affordable Care Act- the elephant in the room for any healthcare discussion
  6. 24 hour coverage – WC and health melding
  7. No young people in WC or Safety Industry
  8. Deflation of the dollar as a currency
  9. WC carrier mergers
  10. WC carrier failures
  11. Bonus – Spiraling medical costs to even become worse

2021 Update –

The market seems to be somewhat stable than when this article was written seven years ago.   The carrier mergers still continue to this day. The challenge for Workers Comp now is to survive intact during the COVID-19 crisis.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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