Zombies, the 'knowledge gap' and human sustainability

As temperatures approach face-melting triple digits in parts of the Midwest and Northeast – with more than 135 million people feeling the burn – American workers face heightened risks of heat-related injuries. A study by WCRI reveals work-related injuries rise by 5% to 6% when it gets this hot. The direct effects of extreme heat include heatstroke and fatigue, while indirect effects, such as impaired cognitive functions, increase the likelihood of accidents like ladder falls.

Check out what Paragon has to offer on the workers' comp front.

There's a lot more to worry about than climate change, of course. It's been a dozen years since the corporate threat level was this high, according to Clyde & Co, and you can chalk it up to a combination of economic volatility, geopolitical unrest and artificial intelligence. "We find ourselves operating in a much riskier world today than we did just a few years ago," Clyde & Co's Ben Knowles explained. "Our clients are operating in a world that's more complex than ever."

Let's go ahead and toss "zombie companies" on to the risk pile. Laden with debt and barely surviving, these are definitely another concern for the insurance sector. Analysis from The Associated Press found almost 7,000 publicly traded zombie companies worldwide, with 2,000 in the U.S. alone. These struggling businesses could face a wave of bankruptcies, which threaten to disrupt industries and increase claims for insurers. The surge in zombies underscores the importance of robust risk management and vigilance in underwriting practices.

So, you think you understand your coverage? Think again. According to a new survey from Trusted Choice, Inc. , there's a "knowledge gap" where 86% of respondents believe they get it, but, well, they don't. Some key points: 56% are unaware that a standard homeowners policy does not cover flood damage; 70% are unaware that a standard homeowners policy does not cover materials or fixtures that are to be installed during home renovations; 55% are unaware that a standard auto policy does not cover business use of the vehicle, to name a few.

Meanwhile, the future calls for real-time data standardization and seamless exchanges, MGAs, like Paragon, must harness fast, reliable data tools to capture growth and stay competitive. We know this. Partners are demanding it. By the numbers, some 65% of carriers prioritize data and technology expertise when choosing the right MGA. Vertafore explained that "agile MGAs remain well-positioned to keep uncovering growth opportunities, even as the wider insurance industry faces new challenges due to the rising frequency and severity of risks."

Needless to say, much has been made of the potential downside of the increasing digitization of the insurance industry, but here's some wafting optimism from WTW's Taffy Jo Mayers posted on Insurance Thought Leadership: Everybody wins!" When this industry transformation comes to full fruition, we’ll see a level of collaboration — and efficiency and transparency — that we’ve never seen before," she wrote, in a shared byline piece with Patrick Anderson-Higgins.

The future is, indeed, bright, especially for MGAs that understand human sustainability and wellbeing aren't just squishy HR buzzwords. No, they represent a clear shift in priorities away from pure productivity, according to a recent Deloitte survey. Human sustainability is all about creating value for workers — boosting health, skills, job quality, belonging, purpose, etc. Yet, there’s a disconnect: While leaders think they're making strides, workers don’t fully agree.