As we look ahead to the next half of 2024, there are four significant staffing trends that are expected to shape the industry.
- A slightly broader liability marketplace: Staffing firms frustrated with the lack of carrier options for liability coverages will be relieved to hear that we have seen some new entrants into the marketplace, and we anticipate more options to be available. While we are not projecting a broad marketplace, there is hope for improvement over what firms have experienced in recent years.
- Cyber market hardening: Specific to cyber liability, 2022 saw a very hard market. However, 2023 brought a significantly softer marketplace with flat to decreasing premiums and increased capacity. Unfortunately, we expect the tide to turn back and the marketplace to harden due to an increase in ransomware and social engineering attacks, as well as strengthened state and federal privacy regulations.
- Auto liability restrictions: Staffing firms are not immune from the hard auto liability marketplace affecting all business sectors. Although businesses may rely on staffing firms to employ drivers to minimize their auto liability exposure, staffing firms have limited options to insure non-owned autos. To address this, staffing firms are negotiating with their clients to ensure that businesses that own vehicles continue to assume the primary auto liability exposure.
- Broader risk management efforts: As a result of hard market conditions in the liability market, we’re seeing staffing firms take a more well-rounded approach to risk management. While staffing firms have historically concentrated much of their risk management efforts on safety to prevent workers’ compensation claims, increased focus is on impacting liability claim results. From HR practices, automobile use policies and procedures, to cyber security, a wider variety of risk management efforts are being utilized.
A proactive risk management is key. Watch a replay of the webinar, Staffing Risk Management: Beyond Workers’ Compensation, to learn more.
By staying informed, staffing firms can effectively navigate these challenges. Visit our staffing industry practice page, or contact a Marsh McLennan Agency (MMA) advisor today.
