The Economics of Workers Compensation
Robert P. Hartwig, PhD, CPCU
Clinical Associate Professor of Finance, Darla Moore School of Business, University of South Carolina

Session’s Top Takeaways

• At AIS 2019 the unemployment rate stands at a 50-year low. A decade ago at AIS 2009, unemployment was at a 26-year high and more than 10,000 jobs were being lost per day.
• An escalation of the current trade war with China could cost the US more than 2 million jobs and workers compensation insurers $450 million in premiums within three years.
• The Fed’s pause on interest rate increases will slow the ability of property/casualty insurers to grow investment income.
• Strong job growth and rising wages are pushing up payroll exposures by at least $300 billion per year.

The Economics of Workers Compensation (PDF)

TRIA Renewal—Action & Reaction
David Priebe
Vice Chairman, Guy Carpenter & Company

Session’s Top Takeaways

• A brief history of TRIA.
• The importance of TRIA renewal specifically to workers compensation. There is no exclusion for terrorism in a workers compensation policy.
• Frequency, trends, and the potential of terrorism events.
• The impact of TRIA on carriers such as percent of held capital required to meet the DED requirements of the program, etc.
• Workers compensation as a potentially volatile line—uncertainty will likely result in short-term renewals. Certain carriers may be impacted by the gap between DED and reinsurance, etc.
• Key considerations for carriers/regulators.

TRIA Renewal—Action & Reaction (PDF)

Cognitive Collaboration—Why Data Science Needs Human-Centered Design
Jim Guszcza
US Chief Data Scientist, Deloitte Analytics

Session’s Top Takeaways

• Without smart design, artificial intelligence (AI) can create artificial stupidity.
• Rather than optimize algorithms, we often need to optimize systems of humans working with algorithms.
• Combining “Nudge” with machine learning can help us create human-centered AI.
• Traditional actuarial science is about quantifying risk. Blending data with digital technology and behavioral design helps us minimize risk.

Cognitive Collaboration—Why Data Science Needs Human-Centered Design (PDF)

21st Century Threats to Worker Health and Safety
John Howard, MD
Director, National Institute for Occupational Safety and Health (NIOSH)

Session’s Top Takeaways

• Artificial Intelligence, robotics, sensing, and 3-D printing all present new opportunities and risks to the 21st century workplace.
  
• Future applications of these technologies in the workplace will be a game changer for the workers compensation industry with new robot-related human injuries, new protection strategies, and changes in the manufacturing process.
  
• Additive manufacturing (e.g., 3-D printing), autonomous machines, and human machine integration will merge with AI, big data, cloud computing, and the Internet of Things to enable the future.
  

21st Century Threats to Worker Health and Safety (PDF)