Evolving Technology Protects Workers ‘24/7’

The Internet of Things is fueling “the next industrial revolution” and is poised to make a significant impact on workplace safety.

By: Nancy Grover | January 25, 2016

A worker in a high risk area gets an alert: three feet away from him and one foot above there is a brace that is about to give way, putting the worker and his colleagues at risk. Because he received the information when he did, the workers were able to take steps to protect themselves and avoid damage to the facility.

The technology isn’t necessarily new. But what is new is the connectivity of the worker to the Internet with data passing immediately to supervisors who can analyze the information and provide feedback back to the worker.

It’s being called ‘the next industrial revolution.’ It’s enabled by IoT — the Internet of Things. And it’s saving companies an average $200,000 to $300,000, depending on the size of the facility.

“This convergence of industrial systems that exist and marrying them with advanced computer capabilities, low cost sensors — we have a new wave of going back into the industrial settings and improving efficiencies for the operation but also worker safety,” said Bridget Karlin, managing director of the IoT Strategy and Office in the Internet of Things Group at Intel. “That’s essentially what’s happening.”

Intel has partnered with Honeywell to create a personal connected safety solution for industrial workers. The prototype was recently introduced at an annual showcase demonstrating innovative IoT hardware and software.

How It Works

The Honeywell Connected Worker solution begins with ‘connecting’ a worker from head to toe with various WiFi and communication technologies. Basically, the worker’s standard operating gear is equipped with sensors and other technologies.

“They are being integrated into everyday tools the industrial worker already uses and is now being enabled with these wearable technologies and becoming part of it,” Karlin explained. “The old hard hat becomes a smart helmet; the vest you wear to climb a pole is outfitted with technology, helping you stay safer.”

Smart watches worn by the worker can capture pulse and heart rate information. A ‘smart’ body activity belt includes various sensors, including ones that can understand gestures.

“So [the worker] could wave his arm in a certain way, spell a letter with his arm, and it could mean ‘man down,’” she said. “We have these wearable technologies that are basically collecting data that is being transmitted through a mobile hub he is also wearing. Your phone can act as a mobile hub … collecting data, sending it to the Internet, and that data is getting analyzed for things like what the worker is doing.”

Depending on the industry and type of facility, the sensors could be incorporated in self-contained breathing apparatus and a heart rate monitor. Information about the worker’s heart rate, posture, motion, and potential exposure to toxic gas can be transmitted.

“We are connecting different devices and getting the data into actionable form, so the worker is protected 24/7,” said Prabhu Soundarrajan, Global Business Development director at Honeywell analytics. “When a worker is doing jobs with varying levels of risk, we really use technology to put more eyes on the problem. Somebody in a control room can see if there is a panic alarm, a gas alarm, or an injury … We are able to really help mitigate a lot of the risk for the worker.”

Adapters

Honeywell plans to begin using the system for gas inspectors in the near future. Beyond that, the company believes it can be used just about anywhere.

“We really see this market evolving and connectivity driving real time data and providing safety compliance and productivity,” Soundarrajan said. According to the Gartner Group, network-connected devices will soar to 26 billion by 2020.

Factory workers for example, could don the wearable devices to enable bidirectional data between the worker and supervisor. “So if he is going to bring a line down, what else should he be looking at?” Karlin said. “Or, ‘you were supposed to do this particular repair, but it doesn’t need it.’”

Mine workers, health and safety workers, even office workers could take advantage of the technology, the companies say. “Even a worker for Amazon who is fulfilling shipments,” Karlin said.

Costs

While neither company would release specific cost figures, officials said they are trying to make it affordable. “We’ve changed our model to be extremely scalable,” Soundarrajan said. “Our goal is to really make it easy to adopt in terms of switching costs … If the technology is too expensive, they won’t use it.”

Soundarrajan said the system can be a huge cost saver for companies. “We’ve done some analysis in the market,” he said. “Each [savings] at an average sized plant [would be] $200,000 to $300,000, depending on the plant site.

Some companies may find they don’t need to make too many changes to use the system. “Many of these industrial settings already have sensors in place and haven’t really utilized the data available,” Karlin said. “Now we can send the data from the worker, so you have a fusion of data and now we are taking advantage of things already in place.”

Nancy Grover is the president of NMG Consulting and the Editor of Workers' Compensation Report, a publication of our parent company, LRP Publications. She can be reached at [email protected].

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

A combination of a choppy economy with increased claims frequency and severity could lead to rate increases in the Management & Professional Liability market.

By: Risk & Insurance | April 3, 2024

Rates in the management & professional liability (M&PL) markets were on the rise from 2020 to early 2023 and are now falling rapidly.

M&PL divisions manage a number of different insurance products including management liability (D&O), professional liability (E&O), employment practices liability (EPL), fiduciary liability policies, cyber, etc. In 2023 and into 2024, a big influence on the marketplace has been the extremely aggressive and softening public company D&O market.

Though these rates have been softening for management liability, that may change over the next few years as companies continue to adjust their business models motivated by economic uncertainty. Layoffs were up nearly 200% last year, Forbes reported, even as other recession indicators, like the inflation rate, improved. A recession could lead to an increased claim activity and force carriers to raise rates.

“Whenever there is a meaningful downturn in the economy, we tend to see claim frequency pop up,” said George Schalick, Jr., senior vice president of the Management and Professional Liability Division at Philadelphia Insurance Companies (PHLY).

With continued fiscal uncertainty, businesses potentially already burdened with pandemic-related claims should seek a carrier with a long history in M&PL products. They will provide much-needed risk management guidance and be better positioned to support their insureds during market fluctuations.

Why Insureds Might See an Uptick in M&PL Claims

George Schalick, Jr., Senior Vice President of the Management and Professional Liability Division, Philadelphia Insurance Companies

The current soft market might come as a bit of a surprise as it does not track with previous underwriting cycles and economic conditions. Afterall, many privately held and non-profit organizations struggled during the early days of the pandemic with shutdowns and rapidly declining revenues. But the Government assistance programs, like the Paycheck Protection Program loans, helped keep many afloat during the tough times.

“During COVID many organizations stopped doing business until they were able to sort out all of the health and safety challenges,” Schalick said. “They were forced to lock down, but then all the government assistance programs allowed them to keep people employed. The increased volume of claims we anticipated we would see coming from the lockdowns and restrictions that were imposed upon businesses in the U.S. didn’t manifest at first.”

“Just because there wasn’t an onslaught of reported claims at the beginning of the pandemic, doesn’t mean the circumstances that would give rise to a claim being reported didn’t occur. Courts and the judicial system were closed or slowed and now that they are back open, we’re starting to see the circumstances that occurred during the COVID lockdowns becoming claims today,” Schalick said. “Litigation is progressing.”

Added to the delayed pandemic litigation is a concern over newer claims that might be filed as the country inches toward an economic downturn. Though a recession was avoided in 2023, experts think a soft dip could occur in 2024, with 76% of economists saying there’s a 50% or less chance of an economic downturn this year — that almost always results in more management liability claims.

“During the Great Recession in 2008, we saw an almost immediate spike in claims because of the economic conditions and the pressure it placed on organizations. They were making personnel changes with significant belt tightening almost immediately.” Schalick said.

What’s in Store for M&PL Policy Rates in 2024?

Despite an uptick in claims and increased economic uncertainty, management liability rates haven’t increased, resulting in market-wide pricing levels that may not meet the increased pressure of rising settlements and jury verdicts.

“Rates are going the other direction and settlement values are not falling,” Schalick said.

The mismatch between rates, claim frequency and severity is, in part, because carriers experiencing the dramatic soft market in the public D&O market are seeking premium gain in the private and non-profit market.

“In the public company market, the rates have been decreasing significantly. The rates were increasing in the private, not-for-profit market, and rightfully so, but there’s a desire to supplement overall mid-size D&O for carriers who also write private not-for-profit, and they see that as an opportunity to aggregate premium,” Schalick said. “So the always competitive landscape in the private, not-for-profit market has dramatically increased in the last 18 to 24 months.”

Still, companies of all sizes and types should be concerned about management liability rates in the future. Legal system abuse is resulting in increases in both the amount of litigation and the size of verdicts plaintiffs are receiving.

Certain areas of the country are particularly vulnerable to this type of legal system abuse. As a result, insureds in these localities are likely to be vulnerable to rate increases.

“The environment is so positive for the plaintiff that forces premium increases so carriers are able to stay in that market long term,” Schalick said.

Why a Tenured Carrier Partner Can Help Insureds Navigate An Uncertain Market

It’s clear that insureds are facing an uncertain M&PL market over the next few years. Fortunately, carriers with a long history in the M&PL space will be there to offer stability.

Philadelphia Insurance Companies has been supporting this market for 35 years. PHLY is committed to offering long-term rate stability, even as economic and claims trends start to push premiums upwards. They have an appetite for all sorts of companies, large and small, for-profit and nonprofit alike.

“We’ve been at this game for a long time and are one of the most tenured underwriters in this space,” Schalick said. “We like to stay very consistent.”

PHLY has worked with both for-profit and non-profit on management liability policies. With dedicated M&PL teams throughout the company’s 13 regions, PHLY provides the support agents and brokers are looking for on behalf of their clients. The teams know their regions well and can respond to local trends. They’re also dedicated to making the renewal process as easy as possible for their partners and policyholders.

“We have real confidence in our results, so we focus a lot on making the renewal experience as painless as possible for all agents and insureds,” Schalick said.

The company is also investing in tools to help insureds avoid losses. Earlier this year, they launched a new online risk management platform, PHLYGateway, which offers resources for insureds on how to create an employee handbook and trainings on issues such as recognizing workplace sexual harassment and discrimination.

If insureds have questions, they can consult a Best Practices Help Line, provided via the platform. That way, they can get on the spot risk management guidance to help them prevent claims.

To learn more, visit: https://www.phly.com/mplDivision/managementLiability/default.aspx.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Philadelphia Insurance Companies. The editorial staff of Risk & Insurance had no role in its preparation.

Workplace Safety Trends