Risk & Business Magazine JGS Insurance Summer 2022 - Page 3

Welcome !

As illustrated by the COVID-19 pandemic and ongoing conflict in Ukraine , the world as we know it is changing . To effectively acclimate to this new environment , we must stay informed and remain alert to evolving situations .

We see change occurring on a macrolevel through a number of new emerging trends . Some of these are unstable labor markets , hardening insurance markets , and policy changes like the development of the Transportation Fringe Benefit Program here in New Jersey . This program provides employees with increased pre-tax income to alleviate transportation costs . The program also includes a provision for qualified expenses and provides benefits for qualified parking , transit passes , and vanpooling . New Jersey is the first state to pass a law of this kind .
These macro events create significant impacts for our communities and pose a definitive challenge to those who seek to navigate them . According to a recent study conducted by the Society for Human Resource Management , approximately 90 % of businesses are experiencing difficulty filling positions , with additional reports from the Bureau of Labor Statistics indicating a labor shortage of 800,000 positions throughout the manufacturing sector . These events have resulted in a lowering of industry standards wherein many employers have reduced entry requirements .
The easing of entry requirements can have significant impacts on businesses . Industry data suggests that employees with less than 1-year prior experience contribute to over 35 % of workplace accidents . Considering unqualified , exhausted and overworked employees , we have seen an increase in workers ’ compensation claims .
There are a number of preventativemeasures that can be taken in order to effectively manage the risk of these claims . Thorough on-boarding processes , the provision of routine training , as well as scheduling regular check-ins to monitor and evaluate employee progress all help to prevent workplace accidents .
In managing these insurance claims , issues can arise around the specific wording and language used in each policy . Because no two policies are exactly alike , achieving an understanding in the language of the insurance policy is an essential tool for the insured .
Given emerging industry prices , terms , conditions , and availability of coverage , it is clear that we are entering a hardening insurance market with the 2021 CIAB third-quarter report uncovering that premiums increased for the 16th consecutive quarter . The average premium increase was 8.9 %. We see the highest increase in the cybersecurity insurance market after reported increases in cyber attacks like ransomware , phishing , and social engineering .
It ’ s important to protect against claims by engaging services such as on-site inspections , hazard analysis , property value determination , and policy coverage reviews provided by your insurance advisor . In every situation , ensure you are vigilant and up to date so that you can budget and act accordingly .
In this issue of JGS Risk & Business Magazine , we ’ ll dive further into these concerns and present a number of solutions for your business . Our experts are excited to help you navigate these challenging times with exemplary education and support . On behalf of all of us here at JGS , thank you for taking the time to read through and we look forward to serving you . +