The global workers’ compensation insurance market was valued at around USD 132 billion in 2016 and is expected to surpass USD 164 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on workers’ compensation insurance for the period 2017-2021. This market analysis considers the major drivers and key emergent trends that will influence the growth of the workers’ compensation insurance market during the forecast period. Some of the top vendors listed in this industry analysis include AIG, Berkshire Hathaway, Liberty Mutual, Zurich Insurance, and The Travelers Indemnity Company.
In terms of geographical analysis, the Americas are the largest shareholder in the global market, with a market share of around 51%. The workforce development and government incentives in countries like the US, Argentina, and Chile will help in the growth of the market in this region.
According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The increasing implementation of telematics will propel the growth of the global workers’ compensation insurance market. The introduction of telematics will help reduce the cost of compensation for medical care and services. The suppliers in the market are partnering with clinics that specialize in providing help for workplace-related injuries and illnesses. These clinics provide supplier discounts in medical bills and services.”
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The new procurement market intelligence report examines some of the primary drivers and trends affecting the growth of this market and its sub-segments.
Decrease in unemployment rates globally
The increase in the need for workers’ compensation insurance is driven by the upward trends in various economies such as the US, the UK, India, and China. The major growth in employment rates comes from the oil and gas industry, and it is an employee-intensive industry with high workers’ compensation insurance costs. The increasing employment rate in emerging economies like India is focusing focus on manufacturing industries and shared economy businesses for the development of the market.
Increased awareness of employers about workplace safety
Risk management advice is becoming a key factor in procuring the workers’ compensation insurance, and it helps in reducing the workplace accidents, which is beneficial for both buyers and suppliers. The introduction of telematics to improve workplace environment are being implemented by insurers and employers as precautionary measures. Various suppliers are using different technologies such as telematics, telemedicine, automation, safety, and security check to improve the workplace safety and reduce accidents.
Labor law reforms in regions such as APAC and South America
The new labor law reforms are being implemented to boost the manufacturing sector in India, Chile, and Colombia and these reforms include single license window and labor inspection schemes for SMEs. The growth of manufacturing industries and stress on reducing workplace accidents in emerging economies like India and China will drive the growth of the global workers’ compensation insurance market. Also, South America is experiencing a change in workers’ compensation insurance market, as countries such as Colombia, Chile, and Argentina are allowing private players into the market, which is making the market more competitive and cost-effective.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Workers’ Compensation Insurance Market- Procurement Market Intelligence Report 2017-2021.’
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