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R&R Insurance Blog

What is Social Inflation and Why Does it Affect my Business?

Posted by Matthew Prickette

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Commercial liability insurance costs are outpacing nominal inflation, but why? 

In December 2021 a jury in Corpus Christi Texas found the owner of Beer Belly's Sports Bar in violation of Texas Dram Shop laws and liable for a historic $301 billion in mostly punitive damages.

The bar owners crime was a patron of Beer Belly's consumed 11 drinks pushing his blood alcohol level up to at least .263. The patron drove home, ran a red light and tragically hit an innocent family killing three people.

Without defending the bar owner, we can still put this large jury award in context. The largest environmental disaster in US history was the Deep Water Horizon oil spill, which BP spent an estimated $71 billion over 10 years in clean up costs and and restitution. The total expenditure of the Texas state government in fiscal year 2021 was $143.2 billion. A jury verdict such as this is an example of a term used in the insurance industry Social Inflation.

Social inflation describes the rising cost of insuring against certain types of risks, such as those related to employment practices, civil rights, and mass tort claims. This increase in costs is driven by a variety of factors, including changes in social attitudes, the increasing prevalence of class-action lawsuits, and the increasing willingness of plaintiffs to seek large settlements such as the Beer Belly's Sports Bar example.

One of the main drivers of social inflation is the changing social landscape in the United States. Over the past several decades, there has been a shift in public attitudes towards issues such as discrimination, harassment, and civil rights. As a result, plaintiffs are increasingly willing to pursue legal action in cases where they believe their rights have been violated. This has led to an increase in the number of class-action lawsuits, which can be incredibly costly for companies to defend.

Another factor contributing to social inflation is the increased use of technology in the legal process. The availability of online legal research tools, combined with the proliferation of social media and other online platforms, has made it easier for plaintiffs to gather evidence and build their cases. This has led to a significant increase in the number of mass tort claims, which can be extremely expensive for companies to defend.

The rise in social inflation has significant implications for companies and insurers. As the cost of insuring against certain types of risks continues to rise, companies may be forced to pass these costs on to consumers in the form of higher prices for goods and services. This can lead to increased costs for businesses, as well as for consumers, who may be forced to pay more for the products and services they rely on.

Insurances companies also could respond to social inflation by raising premiums and tightening underwriting standards, which would make it more difficult for some companies to obtain insurance coverage. This could lead to fewer businesses entering the market, which would ultimately have a negative impact on the economy as a whole.

To mitigate the effects of social inflation, companies can take a proactive approach to managing their risks. This may involve implementing risk management programs, investing in training and education for employees, and working with insurers to develop tailored insurance products that better meet the needs of the business.

Overall, social inflation is a complex and multi-faceted issue that has significant implications for companies, insurers, and consumers. As the cost of insuring against certain types of risks continues to rise, it is important for businesses to take a proactive approach to managing their risks, and for insurers to develop innovative products that can help manage these costs.

Prickette, Matt 3.1

Matthew Prickette | R&R Insurance Services
Commercial Insurance Consultant
https://www.myknowledgebroker.com/matthew-prickette
Matthew.Prickette@rrins.com

Healthier Recipes for a Healthier You

Posted by Taylor Hahn

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As we enter into 2023, many will set intentions to make healthier choices, especially around nutritional components. In the fast-paced world we live in, many rely on pre-made or on-the-go food choices. However, those food choices often have ingredients added to make them have a long shelf-life. The rule of thumb, traditionally, is if you can't pronounce it, don't eat it. On the other hand, many will rely on fad diets. Fad diets are not something that is sustainable long-term. In fact, most who participate in fad diets regain back their weight and more. 

When it comes to setting nutritional intentions, remember small changes lead to big rewards. Could you develop a grocery list and plan out your meals for the week? Could you add in more vegetables and whole grains? To help spark your interest, we have included the January Recipe of the Month which is slow cooker beef stew. This recipe is less than ten ingredients, feeds six and can be completed in the slow cooker in four hours. Healthy meals truly can be that easy!

So, with this new year, we encourage you to try new healthy recipes that fit your preferences, eat a variety of foods, write out your weekly meal plan and of course continue moving!

If you are interested in discussing wellness programming further please reach out to our Strategic Wellbeing Consultant, Taylor Hahn.

 

Topics: Wellness

Keep Wellbeing Top of Mind in 2023

Posted by Taylor Hahn

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As we move into a new year, many businesses are considering implementing or enhancing their wellbeing programs due to the continued rise in healthcare costs along with improving their overall employee wellbeing. In addition, organizations are focused on creating a culture of wellbeing in order to better attract and retain employees. 

In 2020, the health care costs of people with at least one chronic condition were responsible for 86% of health care spending. More than half of all American adults have at least one chronic condition.

Therefore, even small employers cannot afford to not address employee wellness (CDC, 2020). Employers who implement a wellbeing program can see increased productivity, reduced time away from work, reduced disability costs, decreased healthcare costs through cost avoidance and high financial return on investment (Shared Values Shared Results, 2016).

At R&R Insurance, we know our clients fall into a wide spectrum on their wellbeing journey. With that in mind, we created a Workplace Wellness Guide with six steps to wellness success! Workplace wellbeing programs can be daunting to begin or evaluate, so we've streamlined the process to include six easy to follow steps.

Throughout the document, you will: 

  1. Create a Wellness Team
  2. Collect Data
  3. Develop an Operating Plan
  4. Choose Appropriate Health Initiatives
  5. Create a Supportive Environment
  6. Consistently Evaluate Outcomes

There are plenty of credible resources throughout the guide so employers who currently have a turnkey wellness program will still find it beneficial as well as employers who are starting from grassroots. We hope you find this information helpful to begin and evaluate your wellbeing culture. 

If you are interested in the guide and/or discussing wellness programming further please reach out to our Strategic Wellbeing Consultant, Taylor Hahn.

 

Topics: Wellness

Ask Better Questions

Posted by Taylor Hahn

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When beginning a conversation, we are accustomed to ask:

"how are you?"

There's no doubt that many of us ask that very question multiple times a day. When on the receiving end of that question, you now have two options which are to answer truthfully or give the standard:

                               "good and you?"

What information are we really obtaining with that vague question? Could we begin to ask better questions not only in the workplace but at home too? At the most recent Wellness Council of Wisconsin Conference, Zach Mercurio, PhD provided attendees with better questions to ask.

No more "How are you?"

Try asking these six questions instead:

  • What has your attention right now?
  • What kind of day have you had?
  • What do you need help with today? How can I help?
  • What's been most meaningful to you today?
  • Who did you help and who helped you?

By asking better questions, you will begin to have more insight into your co-workers and families day and start having meaningful conversations. Hopefully, you will try testing these out immediately--team meetings is the perfect place to do so!

Lastly, while asking better questions, Zach Mercurio, PhD also emphasized the importance of creating mattering. Follow the NAN points from him below too!

NAN PointsIf you are interested in discussing wellness programming further please reach out to our Strategic Wellbeing Consultant, Taylor Hahn.

 

Topics: Wellness

Anxiety Disorders | The Most Common Illness

Posted by Taylor Hahn

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The U.S. Preventive Services Task Force recommends that adults over the age of 19 and under the age of 65 get regularly screened for anxiety. This is the first time the Task Force has recommended anxiety screenings in adult primary care without symptoms. 

According to the Anxiety and Depression Association of America (ADAA), "anxiety disorders are the most comment mental illness in the U.S. affecting 40 million adults (19.1% of the population) age 18 and older every year." While anxiety disorders are highly treatable, less than 40% of those suffering are receiving treatment. 

While this proposed recommendation is not final and is in the public comment period through October 17th, this is an opportunity for the public to provide input and perspective for final approval considerations.

This News Brief explains further details around this. 

If you are interested in discussing wellness programming further please reach out to our Strategic Wellbeing Consultant, Taylor Hahn.

 

Topics: Wellness

Next Exit: Flu Season

Posted by Taylor Hahn

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Fall is right around the corner, so that means you may be considering how to promote the flu shot to your employees. Just like last year, flu symptoms are very similar to COVID symptoms; receiving a flu shot could save lives and resources. Not to mention, having healthy employees benefits the company since sick time is significantly reduced. While the flu season is unpredictable, you shouldn't take any chances. Consider hosting an onsite clinic or promoting employees to visit an in-network pharmacy/provider. Either way, education on the flu shot is very important.

Sending email blasts, showcasing posters around the office, even a direct mail reminder with specific steps on how to obtain a flu shot will be beneficial to communicate to your employees. That way, it takes the guess work out of the research for the employee. If you're interested in hosting an onsite clinic, feel free to contact our Strategic Wellbeing Consultant to begin the facilitation process; keep in mind that the minimum participation ranges vary from 25-50 participants. 

Lastly, common myths employees have about the flu shot vary from the flu vaccine will make you sick, vaccines aren't safe, the flu isn't bad, etc. Consider promoting this Get the Facts flyer to your employees in time for flu season.

If you are interested in discussing wellness programming further please reach out to our Strategic Wellbeing Consultant, Taylor Hahn.

 

Topics: Wellness

The Mental Health Benefits of Exercise

Posted by Taylor Hahn

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Can you believe these last few months of summer are already here in Wisconsin?

In order to make the most of these beautiful summer days that remain, this month's topic will be centered around the mental benefits in conjunction with exercise. It is known that exercise is fantastic for your body. However, research also indicates that exercise helps to reduce anxiety, depression and negative moods.

The U.S. Department of Health indicates that adults should be targeting 150 minutes of moderate aerobic exercise a week. If that seems like a lot, try to break it down. Start with 10 minute increments three times a day. For example, 10 minutes of walking before work, 10 minutes on lunch, 10 minutes after work. If you repeat that each work day, Monday through Friday, any additional activity you complete on the weekend will be a bonus!

So make the most of the last summer month and take your aerobic activity outside! Find a new park, meet up with friends or take your beloved pet for a walk. We know we will miss this weather come January, plus your body and mind will be benefiting tremendously. 

For additional information on the specific mental health benefits of exercise along with more information about getting started, please view this article.

If you are interested in discussing wellness programming further please reach out to our Strategic Wellbeing Consultant, Taylor Hahn.

 

Topics: Wellness

Chronic Diseases | Containing the Costs

Posted by Taylor Hahn

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As an employer, if you are not promoting and investing in wellbeing programming for your employees, you may fall behind the curve in a few aspects.

As the younger generation is venturing into the workplace, they are expecting concrete wellbeing programming to be implemented and creative components towards overall wellness and ease of access to be intertwined. Having a functioning wellbeing program can help with your retention rates as this great resignation is upon us. If that aspect doesn’t motivate you to consider investing and starting a wellbeing program, what about the costs involved with chronic diseases?

What’s important to note is chronic diseases can be avoided, reduced or even stopped through lifestyle changes.

Chronic Disease - the costs involved

Of course there are specific direct costs and percentages associated with chronic diseases, but often times we forget the indirect costs if an employee cannot be present at work and the cost of that lost productivity.

For more information on containing the costs of chronic health conditions please view this resource.

If you are interested in discussing wellness programming further please reach out to our Health & Wellness Consultant, Taylor Hahn.

 

Topics: Wellness

Resources for OSHA's New Heat Emphasis Program

Posted by Mike Paddock

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On April 8, 2022 OSHA launched a national targeted program to protect workers from heat-related illness. A National Emphasis Program like this typically determines the prioritization of inspections.

On June 14th, OSHA Region 5 issued a reminder to the Great Lakes region's employers that workers need protection from dangers of heat illness: indoors and outdoors.

They ask employers to have workers drink water every 15 minutes, take frequent rest breaks in shade, have an emergency plan ready to respond when a worker shows sign of heat-related illness, train workers on the hazards of heat exposure and to allow workers to build tolerance for working in heat.

On the last point, OSHA has found that:

  • Almost half of heat-related deaths occur on a worker's very first day on the job

  • Over 70% of heat-related deaths occur during a worker's first week

On October 27, 2021 OSHA issued an advance notice of proposed rulemaking for Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings. This was a significant step toward creating a federal heat standard.

The courts currently hold employers liable for heat-related hazards through OSHA's general duty clause. The clause requires employers to provide their employees with a place of employment that "is free from recognized hazards that are causing or likely to cause death or serious harm to employees."

Heat stress killed 815 US workers and seriously injured more than 70,000 workers from 1992 through 2017, according to the Bureau of Labor Statistics.

Heat Stress Resources

HR Software You're Using Might Be Violating the ADA

Posted by Pete Frittitta

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Recently, the Equal Employment Opportunity Commission (EEOC) and U.S. Department of Justice (DOJ) each issued new technical assistance documents about how employers’ use of artificial intelligence (AI) and other software tools to make employment decisions may result in unlawful disability discrimination under the Americans with Disabilities Act (ADA).

Employers increasingly use software tools to help select new employees, monitor performance, determine pay or promotions, and administer or score tests. Without safeguards, this use may result in ADA violations.

The ADA requires employers with 15 or more employees to provide reasonable accommodations and have other processes in place to ensure that their software tools do not unfairly rate or screen out qualified individuals with disabilities.

EEOC Guidance

The EEOC’s new guidance focuses on the following three ways an employer’s use of software tools for employment decisions may violate the ADA:

  • The employer does not provide a reasonable accommodation necessary for an individual to be rated fairly and accurately by the software;
  • The software “screens out” an individual with a disability, even though the individual is able to do the job with a reasonable accommodation; and
  • The software makes disability-related inquiries or includes medical examinations.

The EEOC also provides best practices to help employers avoid these violations.

DOJ Guidance

The DOJ’s new guidance provides a broad overview of rights and responsibilities under the ADA. It also provides examples of the types of software tools employers use, clarifies that employers must consider various disabilities when designing or choosing their software, and explains when an employer must provide a reasonable accommodation when using software tools.

Employer Takeaway

Several factors have led these agencies to address this topic. One is the ongoing unemployment challenge for workers with disabilities. The Bureau of Labor Statistics’ April data revealed a labor force participation rate of 23.1% for people with a disability, compared with 67.5% for those without. Employers should review this guidance and assess their employment technology and processes to ensure they are not at risk for ADA violations.

You can read the EEOC’s new guidance here and the DOJ’s new guidance here.

Source: Zywave, Inc.

Topics: Employee Benefits, Compliance