For a number of reasons, 2020 will go down as one of the most challenging years we have encountered. The year started out strong for our overall economy before the pandemic struck. During the first quarter of 2020, Pay-as-you-go worker’s comp customers ended the year with double digit growth in premium and policy count, a very positive indicator of the value of pay-as-you-go billing. By the end of March, we began to see the true impact of the pandemic on businesses as their worker’s comp premiums dropped by almost 9% in one month. Fortunately, the reduction in premiums resulting from lower payroll steadied as we entered June. During the same period, however, the number of policyholders with a pay-as-you-go billing account continued at a 14% growth rate.
Why does this matter to workers’ compensation carriers? It’s clear that carriers will face a challenge accurately estimating renewal premiums as they try to account for the pandemic’s impact on payroll in 2020. In addition, the prospect of a vaccine may lead to growth in many segments of the market ranging from retail to restaurants, meaning carriers could easily under or over estimate payrolls depending on economic conditions.
What can InsurePay do to help workers comp carriers as we head into 2021? InsurePay’s pay-as-you-go solution offers workers’ compensation carriers and their policyholders the ability to accurately calculate and collect premiums based on real-time payroll data. By offering your insured the ability to pay their premiums each payroll period, you alleviate the guesswork of billing premiums based on payroll data from 2020. Additionally, when you partner with us, you will experience many advantages: