AmTrust’s Matt Zender: An Optimistic Take on Wearables in Workers’ Compensation

By: Matt Zender | June 26, 2023

Matt Zender is senior vice president and Workers’ Compensation Product Manager for AmTrust Financial Services, one of the top workers’ compensation carriers in the U.S. At AmTrust, he manages the WC Product line and strategy. He has been in the industry for over 25 years and is active in a number of committee and board positions of thought leaders and bureaus throughout the country, including CWCI, NCCI and NYCIRB.

For a line of business that has historically been relatively slow to adapt to change, workers’ compensation has been taking technological leaps lately.

For example, digital tools and data have helped make insurance companies’ claims processes more efficient. Video conferencing and telehealth have helped to improve injured workers’ claims experience.

And most recently, wearable technology offers the potential to avoid claims altogether.

Role of Technology in Workers’ Compensation

Businesses use many different types of technology, from machinery to computer and security systems, to manage their operations.

During COVID-19 shutdowns, loss control teams offered virtual assessments utilizing a client’s mobile phone.

By utilizing existing infrastructure, such as security cameras, loss control experts can evaluate near-miss incidents or a worker’s lifting technique and then can offer suggestions on how to improve the process.

To help reduce the risk of injuries and improve safety, companies can move beyond using their current infrastructure and study how wearable technology can be used in their workplace. With wearable technology, companies can monitor and track their staff’s activities, analyze motions and alert for potential hazards.

Additionally, some wearables can supplement a worker’s physical capabilities and enhance an injured worker’s return to work.

Wearables for Workers’ Compensation

Wearables for workers’ compensation have yet to see widespread adoption.

Still, their implementation continues to grow as the technology continues to develop and more companies are seeing the value in helping to prevent worker injuries, assist an injured worker when returning to work or augment daily routines.

For workers’ compensation purposes, wearable technology can do many things, from measuring an employee’s posture and lifting techniques to a worksite’s environmental conditions, including ambient light, humidity, temperature, air pressure, noise dosage and more.

Newer wearable technology can provide real-time data, giving immediate feedback to managers and staff about potentially hazardous conditions or situations to help mitigate risk potential.

The data collected from wearable devices may also help prevent future injuries by predicting hazardous worksite issues and enhancing workplace safety measures.

What Are Wearables?

NCCI defines wearables as any advanced electronic device with smart sensors, worn or carried on the body, that seamlessly collects and transmits data through a network, WiFi or Bluetooth connection.

It is vital to have management support and employee engagement for wearable programs. Different types of industries, including manufacturing, construction and transportation, are testing wearable technology.

Wearable sensors can be beneficial for workplace safety by:

Measuring and monitoring at-risk movements in real-time
Developing an ergonomic risk score
Providing real-time feedback to the worker via audio and haptic feedback

Musculoskeletal Disorders in the Workplace

Workplace injuries vary from one-time incidents to conditions that occur over time.

One category of long-term injury is musculoskeletal disorders (MSDs). When not properly treated, these issues can be debilitating for workers. MSDs include soft-tissue injuries such as sprains, strains, tears, hernias and carpal tunnel syndrome and are the most frequently reported causes of lost work time.

Musculoskeletal disorders can impact a company’s productivity and potentially cause increased health care, disability and workers’ compensation costs.

Exoskeleton Technology

The use of occupational exoskeleton technology, including exoskeleton suits, can reduce a worker’s strain, fatigue and injury risk — some of the more common contributing factors to MSDs.

Passive exoskeleton devices can be used to brace the spine when lifting and holding loads, support arms and shoulders during sustained overhead work and reinforce the ankle, knee and hip joints when carrying heavy materials.

However, exoskeleton suit configurations must be applicable and usable for a broad set of work tasks and for users of different sizes and body types.

Exoskeleton devices can impact workers’ compensation insurance in positive ways by:

Decreasing the number of long-term workplace injuries rates. Repetitive motions or awkward work positions can cause a degradation of supporting muscle groups.
Increasing hidden risks that become apparent after long-term use, which could increase workers’ compensation claims.
Returning injured employees to work as quickly and safely as possible.

Exoskeletons can be used to reduce the time injured employees are out of work. An injured worker could use an exoskeleton to assist them with their work until they are fully recovered, and then the wearable technology would be removed.

Ergonomic AI Services

A workplace ergonomic program can reduce stress and eliminate injuries associated with the overuse of muscles, bad posture and repetitive tasks.

Ergonomics tools are utilizing artificial intelligence (AI) technology to analyze workplace ergonomic risk factors, such as posture, force, frequency and duration, that are the primary cause of MSDs and strains and sprains.

The Future of Technology and Workers’ Compensation Looks Bright

As wearable technology continues to be fine-tuned, it could become an integral part of workplace safety processes and the workers’ compensation market. Employee training programs and coaching can help workers learn to use wearables correctly.

Also, businesses can utilize ergonomic AI technology to help improve employee risk factors to help reduce the potential for workplace injuries.

One of the main reasons wearable technology is not seeing more traction in the workplace is because of cost, which can look prohibitive.

But businesses should think holistically about the total spend of using wearables compared to the cost of worker injuries, and not just the technology’s individual unit price.

With more widespread use, the data from wearables can provide information that could lead to safer workplaces and potentially lower the overall costs of workers’ compensation claims.

As the use of different types of exoskeleton technology increases, the insurance industry could lay the groundwork for how future generations of workers are protected, by promoting long-term studies on the impact of exoskeletons on injury rates and overall costs of usage. &

The Qualities to Look for when Selecting a Financial Lines Carrier

Operating a business comes with its share of challenges, but having an insurance partner that strives to understand and align with your operations can make all the difference.

By: MSIG USA | October 31, 2024

Running a commercial business is no small feat. Leaders are often tasked with making difficult decisions — sometimes with limited data — and communicating these decisions with confidence while acknowledging their inherent uncertainty.

“Expectations are incredibly high in today’s current climate,” said David Guild, head of financial lines, MSIG USA. “Companies and their leaders must be thoughtful and controlled in their communications, conveying both competence and a clear vision on an ever-evolving world stage.

Nevertheless good leaders (whether they are in the C-suite or on the board of directors) consistently persevere and face the challenges of our evolving world, equipping themselves with the necessary tools and techniques to keep operations running.

For financial companies and commercial businesses looking to keep pace with today’s risks and better understand their own exposures, finding the right insurer need not feel like an added weight.

Below are several qualities to look for in a partner that has the experience and insights to help mitigate and navigate their insureds’ unique exposures, giving leaders the space to focus on their core operations.

Sustainability in All Markets

David Guild, Head of Financial Lines, MSIG USA

When looking for a financial lines insurance partner, sustainability should be top of mind. Knowing that an insurer can provide solutions in a hard market alongside the soft will not only provide peace of mind but also help build resilience.

“Leaders should have the room to concentrate on their vision for the company and what it can achieve — not be burdened by potential risks that keep them awake at night. “Your insurance partners should be able to understand the trials and tribulations of running a business, to respect that there is no single right answer to most challenges, and be prepared to assist wherever, whenever issues may arise,” Guild said.

Sustainability is proven in an insurer’s ability to come through on the promises it makes. For example, MSIG USA’s approach has earned it an A+ rating, proof that its team can back the promises it makes and see them through to completion. “We are confident in our ability to serve your insurance needs, on a global scale,” Guild added.

“Everything we speak of revolves around the credibility of our platform, which is reflected in our A+ rating, a 350-year legacy within our family of companies, and our experienced team here in the U.S.”

An Emphasis on Company and Culture

Successful partnerships are built on a solid relationship between insurer and client.

At MSIG USA, “we aim to be a stable and sustainable presence for our clients,” Guild said. “The value of long-term relationships is at the core of what MSIG USA is all about. Our underwriters deeply appreciate the importance of these connections.

“We believe that building and maintaining strong, long-lasting relationships with our customers is essential to navigating the inevitable fluctuations of the insurance market. We are confident in our abilities, and in yours.” he added.

Company culture, as Guild mentioned, is more than an internal commitment; it’s something that can also drive business relationships.

For insurance partners, analyzing and aligning with their clients’ culture helps to solidify partnerships, as well as open the lines of communication and understanding.

“Variables will change, oftentimes rapidly. From our view, what matters is the culture of that company when responding to change. It’s about trusting their character rather than just the policies and procedures in place,” Guild said.

A Source of Truth and Clear Communication

Effective communication goes a long way in clearly understanding an insured’s business and future potential. This allows for sustainable partners to develop coverage that fits and to work closely with their Claims team to understand the partnership in context.

With the amount of data available today, and the number of ways information can quickly be disseminated through different medium, a good insurance partner knows that companies must be the single source of truth for their stakeholders.

“Quarterly and annual earnings calls provide a platform to discuss financial results and respond to investor questions. Investor presentations offer a more comprehensive overview of the company’s strategy, performance and outlook,” Guild explained.

We will look at what analysts and other third parties think about the information provided to try to glean what the investor base will think and how they will act. But ultimately, it is what the company says, and the way they say it, that we will assist in defending, if need be, and so we make sure to listen and learn from the company leadership.

Bringing These Qualities Under One Roof

Leaders want to know that, at the end of the day, their business is a priority for their partners.

Clear communication, a strong relationship and emphasis on sustainability are just the start. Their insurance partners should strive to understand their business, identify areas of concern and craft coverage customized to meet their needs.

With an impressive 350-year legacy, MSIG USA is doing just that for its clients, utilizing its global presence to further its clients’ goals.

“The key elements of our approach are an intellectual pursuit of information, a well-honed practice of underwriting that identifies material aspects for risk assessment, and clear communication of our insights to our clients: brokers and buyers alike. We aim to provide a transparent and informed perspective on the risks we underwrite,” Guild said.

“We bring sustainable, predictable insurance capital and what we believe is best in class service philosophy, honed by working with some of the most sophisticated brokers and buyers of insurance in the world.”

To learn more, visit: https://www.msigusa.com/financial-lines/.

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

MSIG North America is a member of MS&AD Insurance Group Holdings, Inc. which is the 8th largest non-life insurance group in the world by revenue. Based in Tokyo, Japan, we operate in 48 countries/regions and generated $46B in 2021 with approximately 40,000 employees globally. MSIG North America is the marketing name used to refer to MSIG Holdings (U.S.A.), Inc. (“MSIGH”), and its subsidiary companies.

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