Sedgwick’s industry experts and thought leaders are committed to keeping our clients informed on emerging challenges, opportunities and industry news. We’re excited to introduce our Connect 2024 list, which highlights major industry trends and issues that employers, carriers, brokers and risk management and human resources professionals should watch throughout the coming year. In 2024, we expect connected conversations to center around key topics related to people, property, brands and performance and our analysis pinpoints opportunities for collaboration across a variety of industries.
People: Workforce, consumer experience, health and well-being
Every critical decision you make this year will have an impact on people — whether employees, partners, clients, consumers or other constituents. And the needs of these individuals are fundamentally different now than in years past.
The workforce is not just changing; it has been transformed. Priorities have shifted; people expect elevated experiences in the workplace and in everyday interactions. Employers are thinking holistically about health and well-being options for their teams, focusing on culture and development, and finding ways to make the workplace more appealing as individuals adapt to new realities.
Throughout the year, we’ll continue to explore the ways human connection can help people during times of need — and watch how technology automates tasks to free up individuals for more personal engagement.
Property: Environmental impacts, coverage shifts, evolving risks
In the face of evolving catastrophes, insurers and policyholders grapple with increasing claim volumes stemming from natural disasters, business interruptions and geopolitical developments. We expect conversation to pick up around structural risks and resilience, population density and migration, and the challenging economic landscape.
Amid recession, inflation and rising premiums, hard market conditions persist in certain regions and lines of coverage. This reality is prompting a rise in alternatives such as captives, as well as a heightened focus on risk engineering to optimize access to insurance markets.
More broadly, the insurance industry will look at technology’s impact in the property and auto spaces, the risks and opportunities of adopting automation, and how integrating new technology to the claims process will lead to transformation.
Brands: Regulation, readiness, reputation
Brand and reputational challenges will come from many directions in the year ahead. In light of rising litigation and social inflation, nuclear verdicts and fraud cases, organizations seek to build brand goodwill as a preventative measure to combat negative public perceptions. When considering environmental, social and governance (ESG) strategies, organizations are evolving their compliance practices while also managing pockets of resistance and criticism.
Considering next-gen technology, brand risks include security and regulatory concerns over AI, lithium-ion batteries and cyber threats associated with connected technology. Across recalls, we expect more conversation on the challenges of secondary markets, as well as the need for supply chain transparency in support of product authenticity and safety.
Performance: Technology, productivity, partnership
The profound influence of AI and transformative technology like ChatGPT has reverberated across industries, setting the stage for continued expansion in 2024. Through technology advancements, the insurance sector will realize greater capabilities in predictive modeling, fine-tune quality initiatives for real-time action, resolve claims quickly and more efficiently, and positively impact experience, value and outcomes.
Beyond the tech landscape, geopolitical tensions continue to shape global risks, alliances, trade dynamics and the economy. We anticipate continued shifting of resources due to the impact of inflation and general economic uncertainty. Partnership remains critical as these factors lead organizations to investigate outsourced or blended approaches in pursuit of expertise, adaptability, scalability and service. Rewards will come to those who invest in collaborative relationships, understand the nuances of local and global markets, and work together to overcome challenges.
Stay connected
Bookmark the Connect 2024 list for easy access to frequent insights from Sedgwick’s thought leaders on the latest industry trends and share your thoughts with us on LinkedIn, Instagram or our other social channels. We look forward to continuing the conversation and sharing insights with you throughout the year.