In the latest episode of “On the Couch” with Berkley Re Asia Pacific, Glen Riddell, Chief Executive Officer of Berkley Re Asia Pacific, delves into the intricate realm of liability claims involving worker to worker incidents.
As work-related claims become more frequent and the surrounding environment transforms, Mr. Riddell explores the significant data trends alongside Estelle Pearson from Finity. With over 30 years in the industry, Ms. Pearson brings extensive knowledge, particularly from the actuarial side.
The discussion highlighted several key findings:
Labour Hire Staff: While businesses believe they have contracted out their responsibilities through using labour hire staff, they may still be held liable years later if a labour hire employee gets injured.
Complex Claim Dynamics: Worker to Worker (Employment related) general liability claims are not only increasing but are also delayed and more expensive. Insurers often only discover about half of these claims before three years after the accident. Furthermore, the average size of such claims is considerably higher than other bodily injury claims.
Industry Vulnerability: Particularly exposed industries include construction, transport, storage, communication services, and mining.
Post-COVID Impact: The aftermath of COVID has seen businesses opt for flexibility, leading to an increase in contracted staff and thereby potentially amplifying these types of claims.
Ms. Pearson emphasised the challenges faced by actuaries and underwriters in pricing business due to the unpredictability of these claims. “From an actuarial perspective, the uncertainty regarding the number and nature of claims, combined with their complex nature, makes them exceptionally challenging to manage,” Ms. Pearson commented.
For further insights and detailed discussions, tune in to “On the Couch” with Berkley Re. This series continues to shed light on pressing industry topics, with the next episode anticipated to be just as enlightening.
