Navigating strata insurance challenges: how Sedgwick empowers owners and managers for building resilience

March 13, 2024

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Strata insurance plays a crucial role in safeguarding the interests of property owners within a shared building or complex. As the complexities of property ownership increase, so do the challenges faced by owners and strata managers in ensuring adequate insurance coverage. In this blog, we delve into some of the biggest concerns that owners and strata managers encounter regarding strata insurance and explore how Sedgwick is actively addressing these concerns to support the strata community.

The rising cost of strata insurance

One of the primary concerns for owners and strata managers is the rising cost of strata insurance. In recent years, the insurance landscape has undergone significant changes, leading to increased premiums and, in some cases, reduced coverage or no coverage. The challenge lies in finding comprehensive insurance solutions that are both cost-effective and provide adequate protection for the diverse needs of a strata community. Sedgwick understands this challenge and works closely with strata managers to identify tailored insurance options that strike the right balance between coverage and affordability.

The complex nature of strata insurance

Another pressing issue is the complexity of strata insurance policies. Owners and strata managers often grapple with the intricacies of these policies, which can be filled with jargon and technical terms. Understanding the scope of coverage, exclusions, and limitations is crucial for making informed decisions. We simplify the process by providing clear and concise information, guiding owners and strata managers through the claims management process and ensuring they understand policy applications and the underlying decisions relating to policy response. This transparency fosters trust and empowers the strata community to make informed choices regarding their insurance needs.

The unfortunate rise in underinsurance

The risk of underinsurance is a persistent concern in the strata community. Owners and strata managers need to understand the value of their property to ensure it is adequately insured for the correct value. Although it isn’t the owners and strata managers who determine the value, they can decide how much to insure their property for based on the recommendation and valuation of a qualified and reputable expert. Underinsurance occurs when the valuation of the property is incorrect and is lower than its actual market value leading to inadequate coverage in the event of a claim. We address this issue by conducting thorough property valuations and risk assessments. By accurately assessing the replacement cost of buildings and common areas, we help ensure that strata communities are adequately insured, mitigating the risk of financial loss in the event of a covered incident.

Navigating policy and regulatory changes

Strata communities are also grappling with the challenge of navigating the evolving regulatory landscape. Changes in legislation and insurance regulations can have a significant impact on strata insurance requirements. Owners and strata managers may find it challenging to stay abreast of these changes and ensure compliance. We remain proactive in monitoring regulatory developments, providing timely updates, and guiding strata communities through any necessary adjustments to their insurance policies. This proactive approach ensures that strata communities remain in compliance with the latest legal requirements.

The looming threat of natural disasters

Natural disasters and climate-related events pose a heightened risk to buildings and structures, making resilience a top priority. Owners and strata managers are increasingly concerned about the potential impact of extreme weather events on the properties they own or manage, which is why we collaborate with strata communities to implement risk mitigation strategies, such as property retrofitting and disaster preparedness plans. By taking a proactive stance on risk management, we help ensure strata communities enhance their resilience to potential hazards.

The claims process can be a source of anxiety for owners and strata managers. In the aftermath of an incident, the timely and efficient processing of insurance claims is crucial for restoring normalcy. We pride ourselves on our streamlined claims management processes, leveraging technology to expedite the assessment and settlement of claims along with minimising the disruption for strata communities, allowing them to recover and rebuild promptly.

In addition to these concerns, the strata community often faces challenges related to building maintenance and repairs. We recognise the importance of preventive measures in reducing the frequency and severity of claims and by partnering with strata communities to implement robust maintenance programs, we help enhance the longevity and durability of buildings, ultimately reducing the risk profile for insurers.

Our support to the strata community

Our commitment to the strata community extends beyond insurance services. We actively engage in educational initiatives, providing resources and training to strata managers and owners. By fostering a culture of awareness and preparedness, we empower the strata community to navigate the complexities of property ownership with confidence.

Strata insurance is a critical component of protecting the interests of owners and strata managers in shared properties. Sedgwick addresses the biggest concerns of the strata community by offering tailored insurance solutions, simplifying policy complexities, preventing underinsurance, staying abreast of regulatory changes, enhancing resilience to natural disasters, streamlining the claims process, and supporting proactive building maintenance. Through its comprehensive approach, we play a pivotal role in helping the strata community navigate their building concerns, fostering a secure and resilient environment for property owners.

Learn more > explore how Sedgwick is helping the strata community navigate their building concerns here.

Edwina Feilen, Manager, Business solutions, Australia

Delivering flood resilience: minimising the impact of flood claims

January 15, 2024

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One billion people globally are at risk of experiencing a flood. In the UK alone, an estimated 5.2 million homes and businesses are at risk. And the probability of flooding is increasing with climate change. Increased winter rainfall — projected to increase 35% by 2070 — and more severe weather events will exacerbate an already untenable set of circumstances.

The impact of flood risk on businesses is also troubling. In the UK, once a flood hits and affects a business, only 60% of them ever re-open their doors. And for businesses that do, each flood claim entails, on average, 50 lost days of business. Meanwhile, government strategy is shifting, with a newfound acceptance that ‘we can only reduce the risk in some places,’ rather than eliminate the risk altogether.

Now, more than ever, we must harness solutions to proactively mitigate flood risks wherever possible.

Do you know the flood risk for your assets?

Investing in flood resilience is driven by an awareness of the flood risk by the key stakeholders (e.g. building owner / occupier / insurer / lender). For property owners, that means assessing a wide range of factors.

What sources of flooding are in the vicinity of the building? What are the flow routes and hazards i.e., how would the water flow to reach the building or asset you’re trying to protect? What’s the history of flooding at the property? Would potential floodwater likely be contaminated i.e., is a water source nearby fresh, or contaminated with sewage or farm waste? What’s the estimated frequency, duration and depth of potential floods specific to the property?

The basics of flooding

Each type of flooding has unique implications. Pluvial, or surface water flooding, occurs when the ground can’t absorb the water fast enough, so it runs over the surface. Fluvial, on the other hand, occurs when streams, rivers or small ditches overflow. Groundwater flooding occurs when the ground is completely saturated with water, and the water has nowhere to go. Finally, tidal flooding is the temporary inundation of coastal areas or areas around rivers during exceptionally high-tide events. An area not often considered is the risk of sewage backflow into a property when the combined foul and surface water system is overwhelmed. Compound flooding is a combination of any of the above flood types.

It may be counterintuitive, but more properties are at risk from surface water flooding than that flowing from a river or sea. If rainfall is prolonged or intense enough, and the ground can’t absorb the water it will flow over the surface and may flood properties which are often thought to be at low flood risk. 

Property flood resilience in practice

Property flood resilience (PFR) is a broad term capturing measures which minimise the impact of flood water on a property or asset — these can be both permanent measures built into the property or temporary measures deployed in a flood. 

PFR is two-fold: resistance measures, or those that reduce the amount of water entering a building (e.g. flood doors/barriers/automatic air bricks), or recoverability measures that limit the damage caused if water does enter a building (e.g. kitchens / floor and wall finishes not damaged when they get wet). The trick is in balancing both measures, and determining which are most effective and timely for a specific property.

When delivering flood resilience, there’s an important and clear methodology UK professionals follow: the code of practice (CoP) for property flood resilience (C790F), published by the Construction Industry Research and Information Association (CIRIA), an independent not-for-profit organisation.

The CoP lays out a six-stage approach that qualified surveyors should follow for effective delivery.

  • Flood hazard assessment – an assessment that reviews flood risk for the property; determines likely frequency, depth, severity and overall susceptibility to flood.
  • Property survey – a property survey and assessment of existing resilience (conducted by a qualified skilled surveyor).
  • Options development – deciding on PFR strategy and creating associated, detailed flood resilient design.
  • Construction – installing PFR products by appropriately skilled contractors or specialists.
  • Commissioning and handover – a post-installation audit conducted by an independent third-party surveyor confirming that measures operate effectively.
  • Maintenance – assigning responsibility for ongoing operation and explaining to customers how to maintain measures.

A separate document, ‘making your property more flood resilient’ (CIRIA C70C) is a helpful resource for home owners or business owners interested in at-home flood resilience guidance.

The importance of winning over customers

Much of the at-risk population in the UK doesn’t actively adopt mitigation measures even when they’ve been impacted by multiple flood events. Recent research found there are several psycho-behavioural barriers that subconsciously influence a person’s likelihood to pursue flood risk mitigation.

According to research commissioned by the Environment Agency, there’s a widespread lack of awareness among the public of the true extent of risk facing their properties. 

Many participants view themselves as being insufficiently at risk to justify any sort of flood mitigation investment. To that end, many misunderstand risk rates entirely. If a surveyor identifies a 1 in 33 annual flood probability, for example, many assume this means the property will experience a flood once in every 33 years on average. It actually means there’s a 3.3% chance of flooding each year — revealing the true risk to be much higher than perceived. This is made worse by homeowners and businesses not wanting to accept that there’s an ongoing risk.

Additionally, most participants didn’t feel empowered to act and had poor knowledge of which PFR measures were available to install. Self-efficacy also proved important in participant decision-making; those who felt confident in their ability to carry out PFR measures were more likely to do so. 

It’s critical to help customers understand their risk and further establish their appetite for risk. Customers must be able to understand the cost-benefit analysis of how much risk they might be willing to accept, and how much they’re willing to invest to protect their property. We must collectively distance ourselves from the belief that only properties near a river, or only properties in certain environments are at risk. All properties can be at risk — and the time to mitigate, using a holistic and strategic approach, is now.

Some of these concepts were previously shared in a recent webinar presented by Ian Gibbs.

The pandemic may have ended, but unemployment fraud isn’t going away

December 5, 2023

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recent report from the U.S. Government Accountability Office (GAO) highlights the scope of unemployment insurance (UI) fraud during the COVID pandemic, when claims for supplemental government relief programs increased sharply. The total amount of COVID-era unemployment fraud is estimated to be between $100 billion and $135 billion, representing approximately 11-15% of all UI benefits paid during that period. Industry experts fear these estimates are too low, as many state agencies were so overwhelmed during the pandemic that their calculations may be unreliable. The GAO report states, “The full extent of UI fraud during the pandemic will likely never be known with certainty.” 

Now that unemployment claims are leveling off, states are redoubling their efforts to recover overpayments and improve their detection of fraud. This blog will aim to shine a light on recent trends and what jurisdictions, employers and individuals can do to address system vulnerabilities and curtail unemployment claims fraud.

Finding imposter claims

Before COVID, states’ fraud monitoring systems focused primarily on detecting inconsistent information from bona fide claimants regarding their employment separation and wages. Amid the economic downturn associated with the pandemic, unemployment agencies scrambled to quickly distribute expanded benefits and cover additional workforce categories, such as gig workers, independent contractors and self-employed individuals. With unprecedented demand (as outlined below), states could not react fast enough to update their computer systems to check for imposter claims — presenting a huge opportunity for fraudsters to exploit.

Systems are being modified to catch the fraud techniques that targeted Pandemic Unemployment Assistance (PUA) programs in order to protect unemployment programs in both the short and long term. States are now flagging claims for nearly 50 potential fraud indicators, like out-of-state bank accounts, duplicate email addresses and multiple names using the same bank account number. They are also on alert for bad actors who hack into systems to gather names, Social Security numbers and birth dates from the dark web and launder money from fake claims through online cash apps and legitimate bank accounts.

By the numbers

More than 60.8 million unemployment claims were filed in the U.S. in 2020, compared to 11.3 million in 2019. The 536% year-over-year increase is largely attributable to labor market conditions related to the pandemic. According to the Federal Trade Commission (FTC), the same period saw a 1,750% increase in reported cases of identity theft related to government documents and benefits like unemployment. The economic turmoil has since settled post-COVID, and totals for initial unemployment claims filed (allowing for seasonal adjustments) went down to nearly 24 million in 2021 and about 11.3 million in 2022. Based on filings through the month of November, the 2023 total is expected to be between 10.5 million and 10.9 million claims. 

However, unemployment fraud remains a pressing concern. To use Ohio as an example, the state’s Department of Job & Family Services (ODJFS) reported identifying $6.9 billion in unemployment overpayments as of June 30, 2023; included in that amount are $1 billion in fraudulent PUA overpayments and $185 million in fraudulent payments from traditional unemployment programs. Through collaborations with financial institutions and law enforcement, the State of Ohio has successfully recovered about $48.6 million in fraudulent overpayments (including $21.5 million associated with PUA overpayments) and $255.5 million in non-fraud overpayments. ODJFS has instituted a series of systematic anti-fraud measures to prevent future leakage. 

Knowing what to watch for and what to do

Imagine getting a letter in the mail telling you about your unemployment benefits when you still have a job. It might look like junk mail appearing to come from the IRS or from your state’s economic security, employment/unemployment or reemployment agency. The mailing might appear to include:

  • A notice from the state about an open claim for unemployment benefits
  • A bank “pay card” referencing unemployment benefits
  • A PIN code from the unemployment department
  • An IRS reporting form 1099-G indicating the total amount paid during the prior tax year
  • A letter stating that a claim was filed for an individual and that you were their employer

Not only is this correspondence puzzling; it may leave you wondering what to do next. Awareness of these fake mailings and the proper next steps to take is key. If you receive information about a claim that you suspect is fraudulent, report it right away and make sure you’re not dealing with a larger issue of identity theft. Appropriate courses of action include:

  • Reporting the suspicious mailing to your state’s unemployment agency (a searchable database of state websites is available here) or to local law enforcement
  • Utilizing the U.S. Department of Labor’s unemployment insurance fraud reporting website
  • Protecting your credit by setting up a fraud alert and/or credit freeze
  • Monitoring your credit using protection services like Experian and TransUnion
  • Using the reporting and recovery resources on the Federal Trade Commission’s identity theft resource site
  • Proactively verifying with your state’s unemployment agency that an unemployment claim has been filed

Individuals with questions about possible unemployment fraud should be directed to your state’s unemployment agency or your employer’s human resources department. 

Employers should remain on alert for suspicious activity in connection with unemployment claims for current or former employees or for people they don’t recognize. Anything that raises a red flag should immediately be reported to the relevant state unemployment agency. We also recommend providing employees with information — such as this resource from the IRS — about the risk of identity theft involving unemployment benefits and measures they can take to protect themselves.

Learn more — read about how Sedgwick’s unemployment compensation solutions help employers control costs, reduce fraud, maintain accurate records, and take care of current and former employees

Defusing the impact of geopolitical tensions

March 1, 2023

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Over the past year, countries around the world have dealt with wars, coming out of a global pandemic, a legacy of Brexit, and fuel and food security threats.

These factors have and will continue to affect risk — causing shocks on global supply chains and everyday life. Significant shifts in the geopolitical landscape, which are by design man made and therefore unpredictable — like soaring inflation and cost of power — require a truly holistic response. The risks levers driving these changes are connected and therefore any response must be integrated.

A challenge for risk managers running global, international or local insurance programmes is what to insure under their risk transfer, what to absorb within retention and risk capacity/appetite, and who to partner with to deliver that connected response needed. From their lens, the dilemma is whether to increase risk appetite and look at a captive or high-deductible solution or go for a more outsourced model that allows certainty on price and delivery.

For insurers, it is about how to price, how to revisit and strengthen wordings, creating new covers, the degree of green energy vs traditional underwriting. For service providers, it’s about how to balance people and technology, and be a true partner at the table to shape responses. Unfortunately, it is not possible to mitigate or prevent every risk — especially with increasing uncertainty — which is why more than ever, a strong insurance response is needed.

Risk transfer

Several coverages exist which can help provide assurance and should be considered as part of managing global claims programmes by the risk management team. These vary from political risk and violence to terrorism, credit risk and contingency. Cyber cover, for instance, is also critical in the age of cyber warfare and attacks as weapons of disruption. This requires strong incident response, 24/7 capacity and an ecosystem of partners to manage various components — from reputation to restoration.

Having the right coverage and level of deductible is a strong place to start, but it goes beyond that. Working with the broker and insurer, forward thinking and future proofing claims processes from the point of claim and considering how a loss will be managed by the adjuster/expert can take your plan a few steps further. For example, it’s vital to work with partners who have global coverage and can access desired locations or leverage artificial intelligence (AI) for greater automation when appropriate. It’s also beneficial for your partner to utilize remote technology like satellites/drones to augment processes, and have the technical expertise to navigate specialist claims.

To achieve these goals requires collaboration across the value chain, regular stakeholder discussions and robust programme management controls. Trainings and joint learning, which is often done after a weather catastrophe, is a good way to build confidence that if the worse happens, the response is ready. The nature of geopolitical claims is such that the stakes are very high, so there is a need to invest time to get the model and process right in advance of going live on a programme.

Resilience

Behind the global challenges is an ongoing threat: lack of mitigation of climate change. There have been almost apocalyptic events around the world — from floods to fires and earthquakes increasing in unpredictability and ferocity, as well as record temperatures and droughts, creating fires on a scale never seen before. Civil unrest is an additional factor to consider. For insurers and partners, these concerns represent an opportunity to further embed their environmental, social and governance (ESG) agendas, help create smart cities, adapt more United Nations based principles for sustainable insurance, and use positive lessons learned during COVID to drive greater sustainability and business resilience.

Innovation

Crisis does however breed innovation, and the insurance sector has the unique ability to come up with solutions by focusing on building more cost-effective claims responses. This may mean using more remote tools, adopting further digital agendas, unlocking the power of data to drive deep insights and value, looking at parametric solutions, and countering the Great Resignation by building long-term talent strategies. Ultimately, it’s a combination of the people, technology and processes across partnerships that can collaborate and ensure the risk manager looking at a complex global portfolio has the right coverages, business continuity plan, data security and service providers.

New problems will continue to emerge because of chaotic geopolitical events and from volatile financial markets, but rest assured we’re with you every step of the way.

Data privacy and protection: balancing your approach to cybersecurity risk

January 27, 2023

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By Eric Schmitt – chief global information security officer and Brenda G. Corey – SVP compliance & regulatory

In a world increasingly concerned with privacy and protection, companies must balance their awareness of risk with compliance amid rapidly changing regulations.

From a data protection standpoint, over the past 24 months, there has been an increased emphasis on ensuring data is retained only for the period it is needed, or as required by law. With transparency and data rights laws now active in two U.S. states (California CPRAVirginia) and taking effect in three additional U.S. states during 2023 (ColoradoConnecticutUtah), now is the time for companies to assess their infrastructure, isolate areas of potential exploit by bad actors, and educate employees on best practices for protecting sensitive data.

Records retention

A big area of focus is full compliance with a record retention schedule. The record retention schedule is vital to ensure that we’re retaining data only for the period needed, reducing risk by decreasing the data stored, and to comply with emerging legislation. Companies around the world are on this journey today and are revalidating their existing policies to ensure compliance. It’s important to ensure records retention obligations are met for multiple stakeholders – statutory, client, and insurance carrier – and in specific jurisdictions as well as on a global level.

Cyber resilience

On the tech side of the business, it’s important for cybersecurity, backup, and disaster recovery teams to come together and provide a more unified program under the banner of “cyber resilience.” This level of partnership helps to ensure that continuity plans, including business and technology, take into account how to implement protections in the event of a cyberthreat, allowing an organization to quickly respond to emerging threats. Companies should be making certain that their continuity program includes cyber-related issues.

Threat hunting

Armed with the mission of “breaking yourself before somebody else does,” cybersecurity teams look to attack an organization’s own cyber environments in the same way a bad actor might – a process called threat hunting. This gives visibility to not only spot the pain points where attacks may occur, but to build a quicker response so backup data can be protected to ensure not all is lost in the event of a threat. Threat hunting should supplement a robust vulnerability and penetration testing program, not replace. There are two large benefits to threat hunting – your defenders learn to identify attacks as they work with the threat hunters, and the company can help identify areas that may need additional controls to be applied.

Setting up a line of defense

You have to know what you have before you can protect it. By data-mapping all lines of business and the types of data flowing across them – including what vendors share that info – you can get a clear picture of how and where data is secured. Using the MITRE “crown jewel exercises” enables highlighting vulnerabilities around data to protect, so defenses can be layered accordingly.

Colleague education is another tier of optimal data privacy and protection efforts. When it comes to cybersecurity risk, your people are your first and last line of defense. The question of how employees can be better educated to positively identify inbound threats, such as phishing emails, and other malicious activities – and how to reinforce this behavior positively – should always be top of mind. Phishing email training exercises should be done on a regular basis for the entire organization. Colleagues on teams that constantly handle sensitive data may need more frequent assessments for data breach prevention.

In the claims industry, privacy officers work to ensure data rights requests are addressed quickly and efficiently for individual claimants. In harmony with privacy laws, artificial intelligence may be leveraged to provide better services to individuals, such as in the case of automated claim reviews.

Privacy by design

Data privacy and security can be a differentiator for a company and its clients when it’s “baked” into investment and operations strategy. As a company builds out its new process and programs, including the flow of information within the system, it’s essential that teams on the front-end know how to tackle privacy by design. Regulatory agencies are making a heavier push toward reducing the footprint of data; businesses must pay due diligence by asking deep questions about their data security programs and weighing their investment in threat intelligence.

Supply chain reaction

October 19, 2022

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By Graeme Blackie, Head of marine and specialty development

This article was originally published in the October edition of stronger, the ALARM journal. ALARM is a not-for-profit membership association that has supported risk management professionals for over 30 years. They provide members with outstanding support to achieve professional excellence, including education, training, guidance, networking, and industry recognition for best practice across risk management and related services. For more information, visit alarmrisk.com and follow @ALARMrisk on Twitter and LinkedIn.

Sedgwick hosts residential builder forum in Australia

October 11, 2022

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Panelists deliver dynamic insights into the current construction market conditions today and next 10 years

SYDNEY, 12 October 2022 – Sedgwick, a leading global provider of technology-enabled risk, benefits and integrated business solutions hosted an industry forum for residential builders and the broader industry in Sydney on Tuesday, 11 October.

As a leader in the home warranty sector and a prominent provider to state government schemes nationally, Sedgwick has been actively monitoring the ongoing concern of insolvency and defect claims. The forum is an important step to help industry stakeholders understand the current challenges in the construction market.

Joining the forum were industry leading experts: Angus Abadee – director, building and construction policy, NSW Department of Customer ServiceIan Hayward – engineering manager ANZ, PrydaJames McIntosh – national manager, technical services, Sedgwick; Brian Seilder, executive director, Master Builders Association of NSW; Tim Reardon – chief economist, Housing Industry Association (HIA)Bronwyn Weir – director, Weir Legal and Consulting.

“We facilitated an outstanding panel to bring awareness to the work and ever-changing dynamics of residential building market,” said Daniel Sirone, executive general manager, home claims & building services for Sedgwick. “Having visibility to the trends today and what the market will be facing in the next 10 years can help the industry respond and evolve together.”

As the economy continues to improve, construction remains one of the core pillars to the nation’s development. Whilst the industry is always volatile due to supply and demand challenges, the current shortages are impacting everyone in the supply chain right through to consumers who are experiencing increasing costs and delays in delivery.

The forum centered on four areas of discussion:

  • Insolvency of builders, including trends/observations, fixed price contract commitments, competitive market driving pricing, use of provisional sums and progress payment structure, as well as franchise models, investor models, new builder/start up.
  • Consumer protections remain a priority for industry groups as well as the building sector. The panel agreed that consumers continue to face financial and wellbeing implication when going through the home warranty claim space
  • Supply challenges from both the macro and micro level, exacerbated by conflict in Europe and demand for repairs from natural disasters and construction globally.
  • Resilience and quality involving business administration and trade works, well-being and support for staff and regulator programs for disputes and financial strain.

The forum provided the attendees with insights concerning insolvency and how macro and micro-economic trends influence this behaviour, as well as industry insights from MBA and legal perspectives. The forum shared a consumer focus on the challenges builders faced, common issues, and perspectives from a consumer protection lens.

The panel extended the discussion into supply challenges due to global conflict, price fluctuations and material availability and how building with resilient materials can help mitigate against the likelihood of defects.

It was concluded that concerns continue to remain within the industry and government stakeholders, and the NSW Government serving the regions of New South Wales. The NSW continues to act on the challenges facing the construction market with legislation. As the industry continues to lead the economy out of the post COVID environment, it is critical adequate consumer and builder protection measures remain in place and continue to evolve to protect homeowners thoroughly whilst they navigate home building compensation claims.

Mental wellness: awareness to action

October 10, 2022

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By Rebecca Sherman, clinical behavioral health specialist

Oct. 10 is World Mental Health Day, a time designated for education around mental health issues and mobilizing efforts to support people around the globe.

This topic is important to me not only because I’m a licensed clinical social worker and claims practitioner, but it is also important to me as a spouse, parent, friend, colleague and concerned community member. No matter our profession or role, each of us has a responsibility to learn more about mental wellness and what we can do to help ourselves and others.

As World Mental Health Day approaches, I’ve been thinking about this subject in terms of four As.

Awareness

It may sound basic, but there are still many people who don’t understand enough about mental health conditions or their prevalence. Here are a couple of important numbers to consider, particularly in terms of the people you know and interact with every day:

In the last few years, three significant stressors have further exacerbated mental wellness concerns: sharp political divides and unrest, increased worldwide violence and the far-reaching impact of the COVID-19 pandemic. Much of what people are feeling and experiencing are normal human responses to these highly abnormal circumstances.

When we struggle with our mental wellness, it trickles down into nearly every aspect of life. As a society, we must normalize mental health challenges and eliminate the stigmas related to mental wellness issues and pursuit of appropriate treatment.

Access

On the topic of treatment, proper and equitable access to mental health care is critical. Regrettably, the United States lags behind other developed nations in this regard; whereas mental health is generally embedded within holistic wellness care around the world, in the U.S. it’s often separated from mainstream medical care and afforded less cost coverage. This divide creates barriers to care, particularly for those in underserved populations who may already be facing life challenges, such as poverty, domestic violence and other traumatic circumstances.

One positive development of the COVID era has been an increase in mental wellness access points. When in-person treatments were not available at the height of the pandemic, new care options emerged, such as texting with a therapist, video sessions via telehealth, supportive mobile apps and more. The long-term staying power of these options remains to be seen, but they seem to appeal to many younger consumers and, so far, appear to be here to stay. Another step in the right direction was the recent update from a 10-digit to a three-digit (988) lifeline accessible across the U.S., so anyone in distress can more readily call for resources and support during a mental health emergency.

Even with these improvements, there remains a significant gap between ongoing demand for mental health care and available professional resources. The World Health Organization’s 2022 theme for World Mental Health Day is “making mental health and well-being for all a global priority.” Bridging the access gap is a big piece of making that vision a reality.

Accountability

When it comes to our physical health, we know we must maintain proper wellness by remaining active, eating a well-balanced diet, taking vitamins, and getting regular medical checkups. We have the same individual responsibility to prioritize our mental wellness.

It’s important to check in with yourself each day regarding your mental wellness — the same way your fitness tracker or smartphone may periodically prompt you to take a movement break. Do some honest introspection and consider if you’re experiencing any signs of burnout, whether physical (exhaustion, poor sleep), emotional (detachment, lack of motivation) or behavioral (isolation, procrastination). Then, give yourself permission to adjust your expectations accordingly. Some days, it’s OK, and even normal, to not be OK. We cannot control the world around us (the past few years have made that abundantly clear), but we can control what we do to maintain our overall well-being.

In addition to personal accountability, we also have a collective responsibility to look out for one another. Whether it’s through our families, schools, houses of worship, employers, communities, social networks or otherwise, it’s incumbent on each of us to watch for warning signs of mental distress and provide a support system to anyone who may be struggling.

This is the kind of work I’m privileged to do every day as a member of Sedgwick’s behavioral health solutions team. We assist clients’ injured employees in addressing and overcoming psychosocial factors affecting the workers’ compensation claims process. At Sedgwick, caring counts, and that means being accountable for the well-being of the whole person — including their mental wellness.

Adaptability and action

The COVID-19 pandemic and its aftermath have forced us all to adapt to profound societal and personal changes. This new reality can certainly feel out of our control at times, but we can control how we respond to it.

Sedgwick’s behavioral health team focuses on psychoeducation — teaching people the kinds of coping skills they can use to be more adaptable in times of stress. Resilience is a quality that can be learned and cultivated with proper practice. In honor of World Mental Health Day, here are a few tactics you can use to improve your own adaptability and support those around you:

  • Talking about feelings: I’m encouraged to see the openness of many young people talking about mental health. You can help remove the stigma around discussing emotions by honestly sharing your own. Ask others how they’re feeling (vs. doing), but respect their choice not to share.
  • Setting boundaries: There is no shame in establishing healthy boundaries for yourself and others. It’s OK to say “no” sometimes, especially when things start to feel overwhelming or uncomfortable. Conducting daily check-ins with yourself (as explained above) can help you determine your own limits at a given time. Healthy boundaries are a wonderful thing.
  • Utilizing your benefits: Many employers offer a variety of benefits that support mental wellness, such as employee assistance programs (EAP), coverage for therapy via telehealth and/or medical plans, access to paid wellness apps and more. Take advantage of these offerings, and encourage others to do the same. Use all your allotted paid time off (PTO) before it expires so you can relax and recharge.
  • Practicing gratitude: Take time each day to focus on positive things in your life. Look for opportunities to thank those around you and to recognize your colleagues for specific things you appreciate about them.

Individually and collectively, we can’t afford not to invest in our mental wellness. Small and consistent steps toward greater awareness, access to care, accountability and adaptability can make a big difference in the lives of so many.

In honor of World Mental Health Day, take some time to think about what you can do to address your own mental wellness or to support someone else’s. If you or someone you know are in need of additional services or resources, please reach out to your providers for assistance.

Learn more — read about Sedgwick’s behavioral health solutions or watch this video

Empowering injured workers: the role of a surgery nurse

September 7, 2022

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By Tracey Davanport, VP, clinical operations and Melissa Shannon, senior clinical team lead

Getting ready for the workday. Going on a walk with family. Grocery shopping. Working out with a friend. These scenes are what many of us typically associate with a normal routine. But for injured workers, life is quickly turned upside down. Navigating the unknowns and next steps can take an emotional toll, especially for those facing surgery as the best option to returning to what they love to do.

Aside from their concerns about the safety of a procedure or potential pain, injured workers often panic about the financial and psychosocial component of being out of work. Not to mention, worry about how and when they will be able to return to work and their prior level of function. In the midst of uncertainty, they want more than anything to feel heard and to know that someone is there for them. This is where a surgery nurse steps in — to listen; to provide educational resources; to give reassurance; and to be an advocate for the injured worker when they need it most.

Advocacy

When Carly*, a 19-year-old employee suffered a fractured ankle, a claim was opened to a surgery nurse a few weeks ahead of her scheduled surgery. During initial contact, the assigned nurse discovered that Carly lived on the third floor of an apartment without access to an elevator. Not to mention, her space only had a bathtub. Thankfully, the nurse took swift action to inform the provider and request durable medical equipment (DME). Crutches, a rolling scooter, and a device for the tub to keep her foot out and dry were secured prior to surgery. The nurse also scheduled a pre-operation physical therapy visit to make sure Carly felt confident in her ability to use the equipment and recover as soon as possible.

Another injured worker, Sam* was scheduled to undergo outpatient knee surgery when a surgery nurse was flagged. Due to a pre-existing heart condition, Sam was worried about the safety of the procedure. After listening to his concerns, the assigned surgery nurse informed the physician’s office, and the procedure was transitioned to inpatient. To give Sam added peace of mind, they spent time walking through the process and planning next steps. It’s instances like this where the surgery nurse can help fill in the gaps, problem solve and ultimately, advocate for the injured worker when they hit a bump in the road.

Resiliency

To bounce back after a surgery, injured workers can benefit from consistent, regular communication with a surgery nurse. Gary* is just one example. Post shoulder surgery, a technician paid a visit to his home to set up ice therapy. Having left without educating Gary on how to put his sling back on, he felt lost and anxious. Gary was able to connect with his surgery nurse who walked him through the process of getting back into the sling safely. The nurse continued to contact Gary over the course of six weeks to make sure he was attending physical therapy, answer any questions and encourage him to keep going. By building these relationships early on, nurses are seen as trusted advocates and educators to the injured worker throughout the recovery process.

Influencing outcomes and making a difference

An injured worker’s greatest hope is to recover in a way that allows them to return to their everyday routines, to improve their health, to get back to work and to continue doing the things they love to do. Sometimes, this may require the surgery nurse to coordinate care with the physician, examiner, and employer. Other times, they are there to ensure a smooth discharge experience, monitor pain management and document recovery. But no matter the circumstance, they are always there to give injured workers peace of mind.

Our surgery nurse solution helps injured employees facing surgery to be better prepared physically and mentally, and to confidently steer themselves toward a faster recovery. Surgery nurses help achieve the best outcome for every injured worker by working closely with one another and in collaboration with adjusters, doctors, and ancillary care teams. For more information, read our flyer or visit our website.

*Names have been changed in these cases to protect privacy.

Embracing new dimensions of return to work

July 14, 2022

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By Shane O’Dea, head of strategic partnerships and programs, workers compensation

Grabbing breakfast on-the-go, rushing to catch public transportation, or getting stuck in bumper-to-bumper traffic in order to work the traditional 9-to-5 is no longer the standard for many in the workforce in Australia and around the world.

Remote, hybrid and flexible work options continue to present employers with opportunities to help employees stay healthy and safe and support them if they experience an illness or injury.

Well-being

The Australasian Faculty of Occupational and Environmental Medicine (AFOEM), a faculty of the Royal Australasian College of Physicians (RACP), introduced a consensus statement over a decade ago with compelling evidence about the positive impact work can have on employee health and well-being. This still rings true today, but as the needs of employees continue to evolve, “work” has been redefined — and so has the idea of well-being. It’s no secret that many prefer the flexible work arrangements that became the norm during the pandemic. Many employers have reaped the benefits themselves — from improved resilience among their workforce to more positive outcomes for injured or ill employees during their recovery and return. The message is clear: addressing well-being at work is advantageous for everyone involved.

Adaptability

As a resident of Melbourne, Australia — one of the most restricted cities in the world at the peak of the pandemic — I witnessed firsthand the adaptability of injured workers and those supporting them, despite the difficult circumstances. Many relied on employee assistance programs (EAPs) and other early intervention methods for support, and employers rose to the challenge of finding new ways to address their needs. In the United States, telehealth options proved to be an effective approach to treatment. Others who felt well enough were able to work remotely while experiencing a mild case of the flu or even COVID-19. They could not be on-site at work because of the risk to their colleagues and various government mandates, but flexible work options and a dose of resilience enabled them to remain productive while recovering at home.

Following Sedgwick’s acquisition of Direct Health Solutions (DHS), we saw firsthand the positive impact 24/7 nurse triage access had on employers supporting their ill or injured employees. In any given month since March 2020, up to 50% of DHS’ client workforces would contact them for employee absenteeism or injury assistance. In addition to on-call clinical support, DHS offered a human resource service to supplement employee assistance programs (EAPs). This allowed employers to support employee psychological connection at the workplace and overall well-being.

Employer considerations

Employers have an obligation to create and maintain a safe work environment — whether workers are on-site, remote or follow a hybrid schedule. Doing so requires a thoughtful plan for injury prevention, recovery and return to work. This may mean implementing mental and physical assessments of the workplace, redefining structure and connectivity or the willingness to make adjustments and provide accommodations. Complying with government guidelines and regulations is another factor to consider as employers update their policies. Following an advocacy model can help ensure the best level of support and care that leads to the best possible outcome.

What’s next?

While there are always evolving challenges related to return to work, creative thinking and the use of the latest technology can help us find solutions and exceed expectations. Whether an employee needs to take time off work for an illness or other life event, or a person is injured on-the-job, on a client’s premises or by their equipment or products, the Sedgwick team in Australia and around the world is here to take care of each of them. To learn more, visit our website.

Addressing mental health concerns

May 17, 2022

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By Dr. Teresa Bartlett managing director, senior medical officer and Mark Debus, MSW, LCSW manager, behavioral health services

Many of those who became accustomed to remote arrangements during the pandemic fear they will lose their work-life balance upon returning to the office.

Meanwhile, others feel they will gain social engagement and a sense of connectedness. For employers, a one-size-fits-all approach may not work for everyone in the organization.

In this podcast, we are joined by Mark Debus, manager, behavioral health services and Dr. Teresa Bartlett, senior medical officer who weigh in on the ways employers can address employee mental health, ease the transition back to the office and stay flexible throughout the process. In addition, they share various exercises and activities that can help drive resilience, sharpen employee focus, promote wellness, and support productivity. To listen, click here.

Handling employees’ emotional fallout when returning to the office

April 19, 2022

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By Mark Debus, MSW, LCSW, manager, behavioral health services

Over the past two years, workers’ resilience has been repeatedly tested and challenged.

As a result, many are stronger, more agile, and more adaptive than ever before. At the same time, many workers are drained and reeling from the toll of grief, loss, and uncertainty they experienced during the pandemic.

Employees are reentering the office changed from who they were when they left in March 2020. Many people started their jobs remotely and are now working with their teams in-person for the very first time. Even for longstanding leaders and pre-pandemic employees, returning to the office feels new and different.

For those individuals who have not yet returned to the office, many anticipate doing so will negatively impact their mental health. Meanwhile, leaders may be unsure about how to prepare their team for the emotional change that comes with returning to office. There are specific steps leaders and mid-level managers can take to address these concerns and make their team a psychologically affirming environment for employees as they return to work.

Ask about your employees’ feelings

Even in remote teams, after two years, employees’ feelings about their at-home setup may have shifted over time. Managers and leaders needn’t bear full responsibility for their colleagues’ feelings, but now more than ever, employees want to be seen as a whole people — emotions and all.

One simple way to bring mental health awareness to your team relationships is to ask your colleagues how they’re feeling. Be sure to use the word “feeling” (rather than “thinking” or “doing” language) when you ask. For managers and leaders, it may also help to take brief notes about each employee’s feelings as well as any anecdotes about their life outside of work, particularly any achievements to celebrate and any grief or losses they may be experiencing.

Be flexible

We’re seeing employees and workers value choice, flexibility and agency over their schedule. In practice, flexibility is not always possible, but some autonomy is better than returning to old ways and hard rules. Leaders and managers have the ability — perhaps now more than ever — to be accommodating in certain circumstances while also remaining in charge. Managers should prepare to be adaptable, even when starting back in the workplace, and try to give employees autonomy and choice when circumstances permit. If not, employees might explore their options to find a role or team that provides more flexibility.

Lead by example

Demonstrate to your team what work-life balance looks like. Teams take many unspoken cues from managers and senior leadership. This may mean waiting until Monday to send an email you prepared over the weekend or fully unplugging on your time off. By modeling this behavior, you set a positive example for your team to follow.

Another way to lead by example is through sharing your own personal struggles with your colleagues. There’s no need to be overly revealing or share too personally, but when done selectively, carefully, and with authenticity, this a powerful technique that helps build rapport with others.

Take advantage of benefits

Most companies provide benefits to their employees, as dictated by state laws. Many companies now offer more comprehensive benefits packages including employee assistance programs (EAPs) to help with multiple challenging life situations. We’ve seen in the past two years that employees are discovering and utilizing these benefits packages, at an exponential rate. Leaders can promote their company’s employee benefit programs as another resource for employees who are navigating a return to office or any other challenging work-life situation.

The Great Resignation is not simply about wages or work stress – burnout and mental health stressors are key factors to watch. Prioritizing mental wellness in the workplace is here to stay. It’s important for managers and companies to talk about mental wellness, when appropriate, as part of understanding their employees’ perspective.

Learn more about Sedgwick’s behavioral health solutions here.