To help employers prepare and capitalize on opportunities in2018, Sedgwick has identified key trends that are likely to impactrisk management and benefit decisions.

These key trends fall into the following five categories:

No. 5: Compounding global risks.

An unusually high number of natural disasters in 2017 underscored the needfor organizations to have strong disaster recovery plans.Hurricanes, floods and wildfires cost the industry billions ofdollars; the recent California mudslides are adding to that total.As a result, underwriting performance is tested, resources torestore supply chains are stretched, and timelines for rebuildinginfrastructures to resume normalcy are impacted.

Related: 10 U.S. cities with the highest & lowestnatural-disaster risk level

It is critical for organizations to establish a strategy andpartnerships that support an effective business continuity plan.Preparation and action must occur before, during and after acatastrophe if an organization is going to recover and resumeoperations swiftly. The increasing frequency and severity of thesedisasters and other emerging risks emphasize the need forpreparedness worldwide.

No. 4: Shifting tide of policy.

Organizations can expect to see expanding leave programs as theyface increasing demands to help their employee population care fortheir own health and the health and welfare of their families.

Parental leave, caregiver leave and other paid leave programsare increasing in number and complexity, and provide unique andongoing challenges for businesses in the areas of workforce planning and productivity.

Several states are introducing new paid leave bills and othersare clarifying and expanding regulations for leave benefits,continuing a trend from the past four years, particularly in stateswith large workforces in technology firms. States includingArizona, California, Georgia, Illinois, Maryland, Minnesota,Nevada, New York, Pennsylvania, Rhode Island and Texas haveintroduced new or expanded leave bills.

No. 3: Bridging the gaps.

Throughout 2018, organizations will seek ways to bridge gaps inknowledge and service based on changing business needs. In today'scustomer-centric society, many demands can be fulfilled by a few clicks on smart devices. Changingconsumer behavior towards consumption has been driven byadvancement in technology, and the infusion of machine learningcapabilities and advancing artificial intelligence.

Related: Using smart technology to combat insurancefraud

The race toward self-service innovation and the growing desirefor on-demand consumerism continue to push organizations to provideimmediate resources to their customers.

More than 70% of Americans now use a shared or on-demandservice, according to the Pew Research Center. In addition toself-service, machine learning is advancing many capabilities byautomatically sifting through mountains of data, thereby allowingservice providers to detect patterns faster and formulate valuableinsights to improve the quality of service and customer experience.The impact of the changing environment in self-service for risk andbenefit managers is evidenced in the growing need for just-in-timeservices and customer service that parallels other areas.

The movement toward a whole health approach increases trustand engagement, and places less influence on individual providersin favor of a more holistic consensus view of treatments andinterventions. (Photo: iStock)

No. 2: Leveraging interdisciplinary care.

In the changing world of healthcare, we see centralized supportlinking cross-disciplinary teams with a common goal of providingquality care. As more employers embrace principles of advocacy,empathy and responsiveness within a whole health environment,organizations can look forward to continued improvement in theconsumer experience and stronger physical, emotional and financialhealth for employees.

Organizations can also expect to see a continued push tostrengthen connections between risk management, human resources and corporateleadership by embracing integrated programs as they address theshared challenges of healthcare, return to work and ADA complianceissues. In addition, the importance of data connectivity withinorganizations and across providers will continue to grow asorganizations work to avoid information gaps, optimize care, andavoid potential dangers.

As the lines between risk management and human resources blur,employers must be more adaptable in addressing such issues as ADAand return to work in a cohesive manner. More progressiveorganizations are finding that consistency across types of leavescreates greater opportunity for improvements and reducescompliance, lawsuit and fine risks.

Related: 5 key insurance trend predictions for2018

No. 1: Improving experience throughtechnology.

Technology allows employers to engage workers throughout theirrecovery — maintaining better connections while they areaway from work and making the claims process easier for them tounderstand. Our industry is focused on the care and needs ofconsumers, and using technology to offer better and easiercommunication, improved access to on-demand support, andresources aimed at improving the claims experience. Increasedconsumer satisfaction is leading to accelerated return toproductivity and better overall health.

Telemedicine and other remote access offerings will continue tomove toward a standard instead of an exception. Increasing use oftelemedicine is connecting patients with the right provider forinitial and follow-up treatments for minor injuries and illnesses.Instant two-way communication is easier than ever throughout therecovery process. Among its most notable advantages is fast,convenient care regardless of distance, traffic or other geographicimpediments. A well-structured program offers consumers a sense ofempowerment and more active engagement in their own healthcare.

Chatbots and avatars will become more prevalent as support andservice options for all lines of business. Employers see potentialfor use of these tools as virtual health coaches for workers'compensation, disability and wellness programs. The key questionbefore employers is what are the possible advantages, limitationsand liability risks of these cutting-edge virtual assistants.

2018 is off to a fast start. While hurdles and challenges willsurface along the way, preparation is essential. A renewed focus ondisaster recovery and business continuity plans, expanding leaveprograms, the increasing use of self-service innovations, a growingreliance on interdisciplinary care, and improving experiencesthrough technology are expected to impact risk management andbenefit programs. Advanced preparation and planning will enableemployers to not only anticipate these developments but fullycapitalize on opportunities they present.

Kathryn Tazic is a managing director of ClientServices National at Sedgwick. To reach this contributor, send email to[email protected].

See also:

5 keys to 'insuring' a safer 2018

3 technology trends impacting insurer success in2018

5 social marketing trends for insurance agents in2018