Sedgwick Highlights Industry Trends, Risks for Year Ahead

Career development, artificial intelligence, risk engineering, climate risk disclosure, and geopolitical risks are among the top issues businesses will be talking about in 2024, a new report shows.

Sedgwick published its “Connect 2024,” which highlights industry trends and issues for employers, carriers, brokers and risk management and human resources professionals to watch this year.

The report shows that a dynamic work environment is being shaped by labor and economic challenges, along with shifting workplace priorities as people expect elevated experiences in the office and in everyday interactions. Key conversations will revolve around the workforce, consumer experience and health and well-being, most notably including:

• Career development
• Enhanced benefits for overall well-being
• Incentives to make the workplace more appealing
• Cost management
• Outsourcing versus insourcing considerations

Insurers and policyholders have been faced with increasing claims volumes stemming from natural disasters, civil unrest and geopolitical developments. The insurance industry will focus on environmental impacts, coverage shifts and evolving risks such as:

• Comprehensive disaster preparation and recovery
• Secondary losses
• Infrastructure vulnerabilities
• Risk engineering and alternative risk strategies

Organizations across all industries continue to face shifts in the global economy, market conditions and regulatory requirements. In the current market, organizations are considering not just compliance factors, but also brand and reputational challenges. Brands will focus on strategies related to regulation, readiness and reputation while preparing for:

• Complexities of the recall landscape
• Cyber readiness
• Fraud and financial stewardship
• Risks of next-gen technology
• Climate-related risks and disclosures

The combination of artificial intelligence and integrated data has had a profound influence across industries and will continue to make waves as it reshapes work dynamics, interpersonal interactions and cognitive processes. Organizations will adapt as economic and geopolitical developments affect global risks, alliances and trade. Conversations will surround topics related to technology, productivity and partnership, covering:

• The ethical use of AI
• Support for and empowering humans, rather than replacing them
• Geopolitical risks
• Concerns around recession and uncertainties in job markets