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Top 10 Challenges for WC – Expanded Part 2


Top 10 Challenges for WC – The Next Five

Top 10 Challenges –  part 2 of 2

6.    24 hour coverage – WC and health melding
7.    No young workers in WC, Risk Management, or Safety Industries
8.    Deflation of the dollar as a currency
9.    WC carrier mergers
10.   WC carrier failures

Bonus – Spiraling medical costs to even become worse

24 Hour Coverage

Picture Of Top 10 Challenges Mountain Trekking

There has not really been much success with 24-hour healthcare coverage.  The concern is that 24 hour coverage would heavily affect the Workers Comp market.  Claims handlers would have to be versed in health insurance and Workers Comp or a claim would have to be directed to a certain department depending on whether the accident occurred at work.  The pricing for this type of coverage would be complicated at best.

Where Are The New Recruits? 

This concern became apparent when I recently attended a large safety conference.  Every year a large contingent of the attendees would gather at the hotel’s main nightclub. This year, the club shut down well before midnight.  I then realized the crowd had been the same for 10 years with very few younger workers.

Hand Presenting Top 10 Challenges Health Insurance

Over the years, we have had numerous college interns work over the summer.   Even though I/we tried to steer the interns towards WC or Risk Management, all of them took different paths.  All of our interns have become somewhat successful, however, the success was in other industries, especially banking

A great Risk Management degree has been and is now supplied by Appalachian State University.

Dollar Deflation

The deflation of the dollar was covered very well in this article.  The main concern here is the deflation of the dollar as a currency will only make the return of investment even more difficult for carriers.  Once again, as in the previous list, the policyholders will make up the difference with higher premiums.

Even China has had its problems in the banking industry.   A tidal-wave effect would be felt in the overall economy if China had to pull out of its US investments.

Workers Compensation Carrier Mergers/Failures

These two were combined to keep the article from being too long.  As carriers merge, much like the airline industry, competition will sag and prices will increase.  The basic supply and demand model shows that when the same demand (coverage)  exists and the suppliers (carriers) shrink in number, prices will naturally rise.

Close up stethoscope Top 10 Challenges white background
Wikimedia Commons – Stethoscopes

The ULICO merger sent ripples through many markets.   ULICO provided many lines of insurance that were hard to find elsewhere.  This change will be felt for many years to come as the claims are worked through the WC system.

Spiraling Medical Costs – Bonus

One of the unique conundrums in WC is that when prices are reduced, suppliers of medical treatment and equipment tend to make up that price reduction with an increase in usage.  I performed studies over the years for medical treatment vendors and found this to be true. NCCI and WCRI both verified this conclusion.

Bottom Line – One has to attain all the education possible in the insurance, Risk Management, and safety industries.  Flexibility is the key.   You may not be doing the same type of job in the near future, so be prepared.

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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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