Several factors have led to the line's upswing in profit. Employers have improved their safety by using state-of-the-art machinery, employing robots to perform more hazardous work, and participating in specific loss management programs, such as safety committees and drug-free workplaces. The industry also uses cost containment strategies, encouraging insureds to report claims promptly and utilizing health networks to control medical expenses. The success of this line gives us a huge opportunity to draw top talent and generate more business.
Tips for Building a Workers' Compensation Book of Business
There are three factors worth considering when trying to grow a workers' compensation book of business:
Foster the Agent-Carrier Relationship
I've found that a key to building a successful workers' compensation book begins with building a solid relationship between the underwriter and the agency. By working together to identify clients willing to embrace a safety culture, the agent and underwriter can succeed tremendously.
Build Your Knowledge of Exposures
The foundation of strong workers' compensation underwriting is to understand all exposures that face the insured and build successful programs that can help address them. Successful plans should be easy for the insured to undertake and commit to doing. For example, one client in upstate New York reduced employee falls on black ice when a safety management team member reviewed the area and suggested simply re-routing the drainpipes. Minor changes can lead to future loss avoidance.
Go Beyond Coverage
While the coverage for workers' compensation is essential, what else can a carrier bring to the table to improve the overall customer experience? The industry offers a wide variety of resources to help manage risk. Safety management reviews are often part of the insurance offering, which all insureds should use to their advantage, whether from onsite visits to help find solutions to loss areas or online catalogs to grab an idea to improve operations.
To learn more about the workers' compensation line, the NCCI is an excellent resource for workers' compensation data, insights, and solutions.
About the Author
Elaine Manchon Rae is an Assistant Vice President, Workers' Compensation Line of Business for Selective Insurance. She has spent more than 30 years in the insurance industry with a focus on workers' compensation coverage. Elaine began her career as an underwriting trainee and took on roles of increasing responsibility, managing underwriting teams for several years before moving into the product role. Elaine serves on the Steering Committee for the Selective WALI group. Elaine is married to Jim Rae and enjoys spending time with her teenage children (when they allow it!), cooking and long-distance bicycle riding, and participating in bicycle fundraising events for the MS Society.