2025 Workers’ Compensation Trends: What to Expect

As the workforce continues to evolve, workers’ compensation is at the forefront of addressing new challenges and opportunities. By 2033, nearly one in four U.S. workers will be 55 or older, as reported by the Bureau of Labor Statistics (BLS). This marks a significant increase from just over 15% in 2003. The aging workforce brings new complexities, including a rise in chronic health conditions, comorbidities, and longer recovery times following workplace injuries.

At Skyscraper Insurance, we understand that these trends require adaptive strategies. Tailored safety programs, ergonomic solutions, and a focus on preventive care and health maintenance are vital to ensuring the health, productivity, and safety of older employees. These measures don’t just mitigate risks—they also create a supportive and efficient workplace environment.

In parallel, advancements in technology are revolutionizing the workers’ compensation landscape. Innovations like artificial intelligence and telemedicine are enhancing the customer experience, from streamlining underwriting and claims processes to providing injured workers with immediate access to medical professionals. The rise of the gig economy further underscores the need for dynamic, tech-driven solutions to keep pace with an ever-changing workforce.

The importance of risk management is also reflected in recent executive surveys. In 2024, 23% of global executives identified employee risk as their top concern, surpassing all other business risks. Additionally, 42% believed they were operating in a high-risk environment, a notable increase from 31% in 2023. This sentiment highlights the growing recognition of the need for proactive and comprehensive workers’ compensation solutions.

Looking ahead to 2025, businesses should prepare for potential shifts in workers’ compensation costs. Factors such as wage inflation, increased claim sizes, and market dynamics may lead to rising premiums despite a softer market.

At Skyscraper Insurance, we are dedicated to helping businesses navigate these changes effectively. By staying ahead of industry trends and leveraging cutting-edge solutions, we empower our clients to maintain robust, compliant, and forward-thinking workers’ compensation programs. Together, we share your vision for a safer and more prosperous tomorrow.

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Crisis Management

California Wildfire Relief: A Collaborative Effort by Lawmakers and Insurance Leaders

California’s recent wildfires have highlighted the urgent need for action to address the growing insurance challenges in the state. With insured losses estimated at $30 billion, leaders are working tirelessly to provide relief and ensure resilience. Protecting Policyholders Amid Wildfire RisksCalifornia Insurance Commissioner Ricardo Lara has taken swift action, issuing a one-year moratorium on insurance companies canceling or non-renewing residential policies in wildfire-affected areas. Additionally, those who received non-renewal notices within 90 days before the fires are now protected.“If you’ve received a non-renewal notice between October 9 and January 7, your insurer should retain you as a valued policyholder,” Lara emphasized during a press briefing. Lara also proposed a future grant program to assist low-income homeowners in reducing wildfire risks by installing fire-resistant roofs and creating defensible spaces around their homes.“This initiative is crucial for protecting homes and building long-term resilience,” he noted. Legislative Action for Stability and Faster ClaimsCalifornia lawmakers introduced the FAIR Plan Stabilization Act, aiming to bolster the California FAIR Plan with catastrophe bonds to address potential liquidity shortfalls. Speaker of the Assembly Robert Rivas also announced plans to advance legislation that would streamline insurance claims for homeowners affected by the wildfires. The Financial Toll and Industry ResponseAccording to Wells Fargo Securities, insured losses from the wildfires are projected at $30 billion, with homeowners’ insurance accounting for 85% of those losses. High-value properties and extensive damage underscore the financial strain, as the Palisades Fire alone has burned over 23,000 acres and destroyed 4,500 buildings. Despite the magnitude of the disaster, industry leaders assure Californians that the insurance sector is equipped to handle the recovery. Sean Kevelighan, CEO of the Insurance Information Institute (Triple-I), affirmed that “all claims will be covered, whether through private insurers or the California FAIR Plan.” A Call for Resilience and ReformThe devastating wildfires serve as a wake-up call for California to rethink its preparedness and insurance strategies.“This catastrophic event underscores the need for greater resilience,” Kevelighan said. “It’s time to reevaluate how we manage risks and sustain a functional insurance market in this state.” At Skyscraper Insurance, we are committed to supporting our clients in navigating these challenges, ensuring access to reliable coverage, and fostering resilience for the future. Together, we can weather any storm. #WeShareYourVisionForABetterTomorrow

Commercial Auto

How to Optimize Commercial Lines Insurance for Your Business in 2025

The landscape of small-to-medium commercial insurance has experienced steady growth in recent years. With global property and casualty premiums growing at an annual rate of 6-8% since 2018, the commercial lines sector has emerged as a critical area of opportunity. Factors driving this expansion include hardening market conditions, insurer exits from states like Florida and California, and a rising need for tailored coverage solutions to address unique risks. At Skyscraper Insurance, we recognize the importance of adapting to these market dynamics and providing our clients with tools and strategies to thrive. Here’s how businesses can make commercial lines insurance work smarter for their needs. The Power of Diversification Expanding into commercial lines is a proven way to increase profitability while mitigating risks. By offering cross-sector solutions — from specialized liability to industry-focused coverage — businesses can grow their client base while addressing underserved needs. Skyscraper Insurance makes this transition seamless, providing expert guidance and comprehensive options to diversify your portfolio effectively. Streamlining Quoting Processes Traditional quoting methods can be labor-intensive and error-prone, deterring many agencies from fully exploring the potential of commercial lines. With advanced technology, Skyscraper Insurance simplifies this process. Our integrated tools allow businesses to enter data once and receive competitive quotes from multiple carriers in minutes, ensuring clients receive the best possible options while saving time and reducing administrative burdens. Reducing Errors Through Automation Human errors in data entry can disrupt workflows and introduce risks. By leveraging cutting-edge automation solutions, Skyscraper Insurance ensures data accuracy across platforms. Our systems seamlessly integrate with agency management tools, minimizing redundancies and enabling faster policy renewals and claims processing. Embracing a Connected Future Commercial lines insurance offers vast opportunities, but success hinges on embracing digital transformation. Skyscraper Insurance provides the tools needed to connect management systems, automate renewals, and streamline carrier relationships. By adopting our “one-to-many” quoting model, businesses can optimize efficiency, improve client satisfaction, and drive profitability. Partnering with Skyscraper Insurance In a competitive and evolving market, having a trusted partner makes all the difference. At Skyscraper Insurance, we empower our clients with tailored solutions, innovative technology, and industry expertise. Whether you’re expanding your book of business or exploring new opportunities in commercial lines, we’re here to help you navigate the complexities of 2025 and beyond.

2025 Workers’ Compensation Trends: What to Expect