Covid-19 Impact and Looking Ahead
April 16, 2020 | By Ralph Mencia, President, Pride Risk Solutions, Inc.
First and foremost, we hope that you and your families are well and safe during this worldwide crisis.
I’ve heard so many different descriptions of what we’re all experiencing to varying degrees, such as a bad dream, reminiscent of a movie and surreal. The very last description is probably the most appropriate as none of us could have ever imagined where we are today and the impacts, we have all been dealing with.
A New Normal
As I type this I sit and wonder what life will be like 6 months from now. The fact of the matter is we can only speculate.
Here is what I do know. We have all had to adjust our way of life. Many are working virtually and have learned to be efficient and effective in that environment. As well, because of the lockdown consumers have had to adapt to new ways of making purchases, including insurance.
Will our customers be more apt to continue to leverage technology to make purchases on the other side of this? Will our clients now entertain alternative options that would not have been considered in the past? I believe many will change their habits, but for various reasons. For instance, those insureds that used to take risk may now be risk averse. Insureds that would never consider a Professional Employer Organization (PEO) for workers compensation coverage may do so soon either because it’s truly the best option or they may not have a financially viable solution in the standard market.
Since no one has a crystal ball, none of us has any idea what sort of impact this crisis will have on the workers’ compensation market. If history has taught us anything, it’s that catastrophic events are triggers for a hard market.
This is even more reason to stay in touch with our clients and be as relevant as possible. More importantly, all agents should be researching viable coverage options both in the standard and alternative markets. Which should include a PEO option if, in fact, the workers' compensation market tightens on the other side of COVID-19.
Pride Risk Solutions is a marketing/program management company for Southeast Personnel Leasing, Inc., a PEO, specializing in A-rated high hazard workers' compensation coverage. Southeast has been in business for over 30 years and built on a financially strong foundation. Please keep us in mind should you wish to consider Southeast Personnel Leasing for your client’s future workers’ compensation needs.