Occupational noise-induced hearing loss (NIHL) is a significant workplace health concern, and employers have a responsibility to protect their workers from these risks.  Australian regulations require certain employers to complete mandatory noise monitoring activities or risk heavy fines for non-compliance.

Understanding noise exposure in the workplace  

Excessive noise exposure is a common hazard in industries such as construction, mining, manufacturing and transportation. 

In Australia, prescribed workplaces must provide hearing assessments for workers exposed to high noise levels. A prescribed workplace is one where workers experience:  

• A representative daily noise dose of ≥85 dB(A) over an eight-hour work period  
• Noise peaks of ≥140 dB(lin) at any time  

For businesses operating in New South Wales, Queensland and Western Australia, compliance with noise regulations is crucial to avoid legal penalties and, more importantly, to protect employees from long-term hearing damage.  

Common noise risk factors

Your workplace may exceed safe noise levels if:

• Employees raise their voices to communicate at 1 metre distance.
• Machinery or tools like grinders, saws or compressors are in use.
• Vehicles or equipment produce constant high noise levels (e.g., mining, construction).
• Workers use hearing protection due to loud conditions.

Audiometric testing: the key to noise risk management  

Audiometric testing is mandatory for prescribed employers and helps to track changes in workers’ hearing over time. The testing process follows a structured timeline:  

• Baseline (reference) test – conducted within three months of an employee starting a role with noise exposure risks. Workers must undergo 16 hours of quiet time before the assessment. 
• Monitoring tests – conducted every two years (or more frequently if required) to detect early signs of hearing loss. Unlike the baseline test, quiet time before testing is not mandatory.  

Employers must ensure that these tests are conducted at approved locations with trained audiometry operators. 

Screening audiometry for workplace safety  

Screening audiometry, also known as pure tone audiometry, is a popular test run often run at pre-employment stage during the recruitment process. It is a basic hearing test that determines whether an employee meets a specific hearing standard for their job. While not legally required, many employers choose to include this test as part of pre-employment medical screenings, particularly in industries where hearing ability is critical (e.g., the rail sector).  

Legal responsibilities and compliance  

For businesses operating in prescribed workplaces, regulations mandate that employers must provide:  

1. Audiometric testing for workers frequently exposed to noise above the exposure standard.  
2. Personal protective equipment (PPE) to reduce the risk of occupational noise-induced hearing loss.  

Failing to comply with these regulations not only puts employees at risk but can also lead to legal consequences and reputational damage for businesses. Employers should establish a structured noise management plan that includes periodic assessments and preventive measures.  

Next steps for employers  

1. Measure noise levels

You need audiometric testing if noise exposure reaches:

• 85 dB(A) averaged over 8 hours
• 140 dB(C) peak noise

You can measure noise levels with:

• Noise Level Apps & Noise Dosimeters – Use a basic decibel meter app or personal device to measure noise exposure.
• Professional Noise Assessment – Hire an Occupational Hygienist to conduct a professional noise assessment.

2. Identify common noise risk factors

Your workplace may exceed safe noise levels if:

• Employees raise their voices to communicate at one metre distance.
• Employees have a temporary reduction in hearing or ringing in the ears after leaving work for the day.
• Machinery or tools like grinders, saws or compressors are in use.
• Vehicles or equipment produce constant high noise levels (e.g., mining, construction).
• Workers use hearing protection due to loud conditions.

3. Conduct a workplace noise assessment

• If noise risks exist, conduct a formal noise assessment as per WHS regulations.
• This should be done by a qualified professional every five years or if conditions change.

4. Implement hearing testing (if required)

• Baseline test within three months of an employee starting in a noisy role
• Ongoing testing every two years for continued exposure

If you are unsure whether your workplace requires occupational noise monitoring, seek expert guidance. Conducting noise assessments can help determine your workplace’s exposure levels and ensure compliance with legal requirements. Additionally, consider implementing automated workflows to manage periodic medical screenings efficiently.  

How we can help

We provide comprehensive occupational noise management solutions to help businesses maintain safe and compliant workplaces. Our expert team supports employers with noise assessments, pre-employment medicals, audiometry testing and compliance monitoring. With a network of trained audiometry providers, we make the process seamless, ensuring that employees receive timely hearing assessments.  

Protect your workforce and stay compliant with workplace noise regulations. For more information, visit www.dhs.net.au 

Simplifying the process

The resolution of workers’ compensation claims — in a way that limits future impact on your Ohio Bureau of Workers’ Compensation (BWC) rates, premium and discount options — depends on injured employees following a safe, quick path to recovery. In Ohio, managed care organizations (MCOs) work closely with employers, employees and physicians to facilitate timely, appropriate medical treatment. MCO case managers keep everyone focused on the return-to-work/return-to-life goal. Your connection to your MCO ensures lost workdays and costs are kept to a minimum. An MCO’s focus on recovery will help ensure the health and productivity of your workplace. 

At Sedgwick MCO, we simplify the claims process. We thoughtfully engage with physicians for better treatment options and medical outcomes. We pursue transitional and early return to work opportunities. We seek out medical savings. And we understand our clients’ business challenges, bringing industry-specific expertise, local connections, access to technology and data, and a depth of resources to care for their people and their performance. 

Controlling costs

Ohio employers pay workers’ compensation premiums to BWC based on the cost of claims, relative to organization size and payroll level. Lower claim costs yield lower rates and premiums, and lost time is the biggest cost driver in claims. An MCO that excels in facilitating timely and safe return to work is going to be an asset to employers seeking lower premium costs.  

Another hidden cost to employers is the absence of valuable and experienced employees. A high-performing MCO will help an injured employee navigate the treatment and recovery process and return to the workplace quickly, preserving productivity requirements and avoiding alternative labor costs to the employer. An MCO that rates highly in return-to-work efficiency supports lower direct and indirect costs to the employer.  

Providing expert guidance every step of the way

It’s important to choose an MCO that will quickly and safely lead injured employees on a path toward work and health. An MCO’s process and resources matter. MCOs guide the claims experience, influence outcomes, and impact an employer’s financial health. Choose an MCO who will be able to provide stable, consistent support over the next two years and beyond. 

Sedgwick MCO’s strength is the investment we make in clients’ overall experience and the care we take in supporting all aspects of their workers’ compensation programs. Our 400 employees across the state are part of customers’ communities, with expertise aligned to meet their needs. Our full-time, on site medical director provides clinical insight and assists with complex cases. Our bill review team finds opportunities to lower medical expenses, helping reduce costs applied to premium rates. And at Sedgwick MCO, caring counts – we simplify the claims process and serve as your trusted advisor.

The path forward

If you are an Ohio employer already working with Sedgwick MCO, you do not need to take any action during open enrollment. If you are not currently with Sedgwick MCO, don’t miss your opportunity to secure the best possible resources available. Learn more and enroll with us by May 23 at sedgwickmco.com.

Here are some highlights from their talk:

The rise of mental health visibility in workers’ comp.
Mental health has been part of the disability and accommodations space for years — particularly on the non-occupational side.

• In the years since COVID, mental health claims and care have been on the rise.
• Mental health concerns have taken a more prominent space in state legislatures, especially for first responders.
• Its presence in the workers’ compensation landscape is gaining even more traction, with societal attention and evolving legislation prompting the industry to take a closer look.
• Employers are encouraging more mental health and wellbeing treatments with digital health apps, telehealth appointments, access to behavioral specialists and more.

Mental health claims and state-by-state differences.
Mental health claims currently make up a small portion of overall workers’ compensation cases—less than 2%. With every state having its own legislation, many workers don’t know what kind of mental health claims are available to them and what is covered.

• Koonce describes two types of claims in the mental health space:
  • “Mental-mental”: mental health claims that don’t involve a physical injury.
  • “Physical-mental”: mental health claims that arise out of a physical injury that’s covered by worker’s compensation.
    
• Every state has different burdens of proof for what is allowed for each type of claim with little consistency.
• Most states still only allow mental health-related claims when tied to a physical injury (“physical-mental”).
• Data shows a slightly higher prevalence of “mental-mental” health claims than those tied to a physical injury. 
• Prevalence is strongly influenced by state legislation, with an increase in claim volume in states that permit “mental-mental” claim filings.

Early intervention means better outcomes.
One of the most important findings in this paper is that early behavioral health treatment leads to significantly better results.

• Intervention from a behavioral health specialist within the first 90 days of a claim reduced claim time by 60–70% — and led to more successful return-to-work outcomes. 
• Claims with delayed mental health treatment often lasted more than three times longer than those without mental health components.
• Treating mental health like any other comorbidity can lead to better recovery timelines and overall experiences for injured workers.

Overall, a holistic, case-by-case approach is preferred. Not every case is assigned a mental health worker and state laws vary, but they’re powerful tools to get better outcomes for workers.

Re-visit the paper, Unveiling the Hidden Struggles: Mental Health and Workers’ Compensation, here.

And listen to the whole conversation between George and Koonce here.

In the face of uncertainty, insurers, meteorologists and scientists are refining predictions, improving response strategies, and leveraging technology to streamline claims and recovery efforts. Advancements in forecasting, damage assessment and claims processing are making a real impact.

With the 2025 tornado season now underway, it’s vital to review forecasts, learn from past disasters, and adopt effective preparation measures. 

The forecast for 2025

Like the weather itself, tornado patterns have highs and lows. The 2024 tornado season was among the worst on record, with 1,855 tornadoes reported, including over 500 in May alone. We’ve already seen devastating storms hit the Midwest and South in 2025, with estimated damages in the hundreds of millions and more than 40 lives lost.

Overall, fewer tornadoes are expected this year, with an anticipated range of 1,300–1,450. Still, this estimate exceeds the historical average of 1,225, which underscores the ongoing risks communities face in tornado-prone areas. AccuWeather 2025 projections indicate expected tornado counts of 200–300 in April and 250–350 in May.

BankRate 2024 data highlights states with the highest insurance costs for residential tornado damage (based on $300,000 in dwelling coverage): Illinois, Alabama, Colorado, Texas, Mississippi and Nebraska.

Toward smarter solutions for tornado losses and recovery

The rise in tornado-associated losses has motivated the insurance industry to explore more effective and targeted solutions. We strive to move beyond simply issuing a check weeks after an incident. We’re aiming to reduce the time between acknowledging a claim and providing meaningful assistance, such as temporary housing, pet accommodations or meeting other immediate needs. 

There’s a growing recognition that managing catastrophe claims requires strategically allocating resources. Some claims may involve minor damage, like a missing shingle, while others result from tornadoes leveling entire neighborhoods. One way to manage this wide range of claims efficiently and thoughtfully is by leveraging advanced technology and digital tools to streamline processes and quickly get adjusters the information they need.

For instance, satellite-based measuring and dimensioning tools now provide adjusters with detailed property data — roof, window and gutter measurements — before they even visit a site. Additionally, intuitive intake tools replace outdated methods like faxes and emails, ensuring claim information reaches adjusters, housing specialists and other key resources immediately and seamlessly.

Carriers are also making strategic updates to underwriting practices. Peril-based deductibles, particularly for wind and hail damage, are becoming more common in high-risk areas. These tailored deductibles more closely align coverage with specific environmental risks.

Roof age is another critical factor in underwriting decisions. Insurers implement guidelines promoting preventive maintenance, often emphasizing partial replacement options. These measures help balance policy sustainability while encouraging property owners (both commercial and residential) to maintain resiliency against severe weather events.

Lessons from past catastrophes

Changes like these didn’t happen in a vacuum. They were informed by lessons learned and best practices perfected from past catastrophes. For example, the devastation caused by hurricanes like Helene and Milton in 2024 and the widespread destruction from California wildfires underscored the need for immediate documentation.

Another significant challenge has been assessing damage in areas that are difficult to access following a disaster. This has driven insurers to embrace drone technology, which has proven invaluable. Drones are being used to capture high-resolution images of damaged properties in real time, allowing insurers to determine the extent of loss quickly and accurately. In wildfire-affected regions of California, drones have helped adjusters and claims managers assess burned structures without waiting for emergency crews to clear hazardous debris. After hurricanes, drone surveys can map out flood damage and identify properties in need of immediate assistance, improving response times and minimizing disputes over coverage eligibility.

Promising technologies in disaster response and recovery

Digital tools are also reshaping how insurers communicate with policyholders. The adoption of artificial intelligence and advanced AI-powered technologies is revolutionizing disaster response by improving damage assessment and expediting claims processing. Innovations like our proprietary smart.ly platform simplify claim submissions, helping affected homeowners secure support quickly and efficiently. These advancements reflect the industry’s focus on leveraging technology to streamline operations and enhance outcomes.

Other new tools are also reshaping recovery efforts. LIDAR (light detection and ranging) technology allows adjusters to perform detailed structural assessments with smartphones. At the same time, AI-driven image analysis automates the identification of structural vulnerabilities, reducing dependence on manual inspections. Meanwhile, next-generation disaster modeling and predictive analytics equip insurers and emergency responders with better tools to forecast hurricanes, tornadoes and wildfires. By anticipating these events more accurately, resources can be strategically deployed in high-risk areas, enabling swift and effective responses.

However, it’s important to remember that technology may not be the only solution. In a disaster, access to laptops, cellphones and the internet may be down or intermittent. Deploying a remote call center staffed by experienced claims professionals may be the ideal solution and is often preferred by customers who prefer real-time human interaction during a crisis.

Making the right moves

Heightened awareness of recent catastrophes has inspired insurers and emergency management organizations to emphasize preparedness. Though tornado season is now in full swing, there’s still time to review current practices, ensure they are effectively implemented, and initiate a process to analyze and enhance future performance.

Insurers and claims professionals should work to: 

• Improve customer communication strategies: Provide multiple avenues for claims intake, including phone, email and online portals.
• Expand digital claim processing capabilities: Implement AI-driven tools to accelerate damage assessments and reduce manual processing times.
• Enhance catastrophe response plans: Prepare for dual-event scenarios by establishing contingency plans and securing additional adjusters in high-risk areas.
• Emphasize empathy and emotional intelligence: Claims adjusters are often the first point of contact for distressed homeowners — providing caring that counts is the right thing to do following a catastrophe and can significantly improve customer satisfaction.

Further, educating policyholders is critical in preparing for the remainder of tornado season. Key recommendations for homeowners and business owners include:

• Document property conditions before storm season: Take photos and videos of buildings and belongings to streamline future claims.
• Review your insurance policies: Understand new deductible structures and verify whether your coverage includes additional living expenses (ALE) in case of displacement.
• Develop an emergency response plan: Identify shelter locations, secure important documents, and create a communication plan for family members.
• Utilize available technology: Register for claims portals and familiarize yourself with digital intake processes to expedite submissions that may be needed.

Looking ahead

While hurricanes, tornadoes and wildfires remain unpredictable, today’s insurance industry is better equipped to mitigate their impact. The integration of next-generation technology, enhanced policy structures and improved claims processes are making a tangible difference in how insurers respond to severe weather events. 

To continue to meet market needs, the focus must remain on preparation, adaptability and leveraging technology to drive efficient and effective disaster response. By learning from past experiences and embracing innovative solutions, insurers can ensure faster, more seamless recovery efforts — ultimately reducing financial losses and improving outcomes for carriers and their policyholders.

> Learn more — explore our catastrophe response solutions, and refer to our CAT resource center for the latest on storm season

As AI and other emerging technologies rapidly transform the workers’ compensation landscape, businesses are feeling the pressure to harness these tools to stay competitive. While AI can be a great way to boost efficiency, diving in too quickly can lead to more risks than benefits. Instead of rushing implementation, businesses should take a strategic, thoughtful approach when integrating AI tools into their workers’ compensation programs. 

Identify use cases

Before introducing AI into your program, take a step back to understand the problems you’re trying to fix and ensure you’re starting with good reasons to use it. What challenges are your adjusters facing? Are there steps in the claims process that feel difficult for your clients or their injured workers? 

Finding use cases that make tasks easier – like summarizing claim details for adjusters or providing scripts for workers to report incidents – can enhance workflow, boost return-to-work outcomes and improve customer experience. 

A great way to test an AI tool’s impact is by launching a pilot program with select clients. Whether you’re developing a tool in-house or using a third-party offering, piloting allows you to get feedback, gauge performance and determine if the tool is worth implementing across other programs.

Address risks before they’re problems

Once you know how AI will fit into your operations, it’ll be easier to identify any potential risks. Consider the privacy and safety risks that could result from improper installation, access or use. Then, create clear guidelines, safety measures and training sessions to mitigate them.

It’s important to keep in mind that while AI is becoming more advanced at decision-making, it should support – not replace – human judgment. Workers’ compensation claims are deeply personal and significantly impact people’s lives. Any final decisions should always be made by an experienced claims professional to ensure fairness and accuracy.

Get employee buy-in

Successfully integrating AI into workers’ compensation programs largely depends on the support of adjusters and other claims professionals. Without their buy-in, even the best AI tools will struggle to gain adoption.

Some adjusters may feel uneasy about using AI and fear that it’s putting their job at risk. In these situations, transparency is key. Take the time to explain the tool’s abilities and limitations and make clear the benefits it brings them, like automating menial tasks so they can focus on more meaningful work. 

Adjusters should see AI as a new best friend who helps them drive better claim outcomes. As many adjusters work remotely, having access to real-time insights and support – anytime and anywhere – has become invaluable. When adjusters recognize that AI is meant to enhance their role rather than replace it, implementation and adoption will become much smoother. 

Keep looking ahead

As AI continues to evolve and present more opportunities for workers’ compensation, it’s important to keep sight of why your business adopted it in the first place. Regularly tracking impact and making necessary adjustments along the way can ensure that AI continues to support your business’ goals well into the future.

While many businesses today are using AI for administrative tasks, this is just the starting point.

As we move into the age of agentic AI, where decisions and recommendations can be made autonomously, adoption will undoubtedly accelerate and transform claims management as we know it. 

Though many of us are just getting our feet on the ground with AI, we must keep our eyes on the horizon and be willing to embrace what’s next to stay competitive. 

Final thoughts

AI has the potential to revolutionize workers’ compensation programs, but only when implemented thoughtfully. Identifying the right use cases, mitigating risks, getting employees on board and continually refining AI strategies can help businesses run programs more efficiently while still maintaining the human touch that’s critical when dealing with injured workers. 

At Sedgwick, we’re always looking for new ways to innovate and optimize the digital claims experience. Our proprietary, AI-enabled technology helps our colleagues do their best work and allows us to better support those who turn to us in their time of need.

Connecting workplace injuries, weight loss drugs and employee health 

Claims professionals and leadership teams will need to consider a multitude of factors as they navigate the weight loss medication landscape. As obesity is a prime example of a comorbidity that can negatively impact an injured employee’s recovery, return to work and performance, and create risks for other conditions such as high blood pressure and heart disease, these drugs will continue to be positioned as effective strategies for a healthier workforce. 

Though obesity is often not compensable under workers’ compensation, the risks and potential delays in recovery could lead companies to consider weight loss medications as viable options to reduce injuries. It’s imperative that business leaders work with claims examiners, physicians, medical professionals and nurse case managers to ensure employees are aware of the potential significant side effects of these drugs. In addition, if they are to be covered, it is crucial to have an exit strategy. This plan should include defining durations, compensability and ongoing assessments to provide guardrails and guidance for workers’ compensation claims in this area. 

Key considerations for claims administration 

A 2024 survey shows that the claims industry is already seeing the effect of the growing popularity of weight loss medications, as there has been an 8% jump in employer coverage and 8.9% of organizations’ total annual claims are for GLP-1 drugs. 

As this number is expected to rise, there are several cost considerations to keep in mind moving forward when administering and assessing workers’ compensation claims. These include: 

• Several states have presumptions in place for cardiovascular disease and diabetes associated with first responders.
• These drugs have been approved by the U.S. Food and Drug Administration (FDA) for reducing cardiovascular risk.
• Have a strong utilization review plan that uses all available guidelines to ensure you are covering what is required.
• Work closely with your carrier and employer on a strategy for those cases where you think it can make a difference in a positive way.
• Be prepared to cover other items associated with the significant side effects.

Alternate treatment options 

Finally, a key aspect of employee education around healthy lifestyles that support a productive, efficient and available workforce is offering clear guidance and tips for alternate treatment options. These can serve two additional purposes – to provide options that may be lower in price, as well as options that are more likely to be covered under workers’ compensation, if GLP-1 drugs are not. 

Some examples of alternatives include: 

• Exercise programs 
• Bio-psycho-social models that emphasize and educate employees on how all three factors are connected and influence health and potential illnesses 
• Nutrition and behavior therapies 
• Other FDA-approved medications outside of weight loss drugs 
• Bariatric surgeries and procedures 
• Wearable tech, which can provide personalized, helpful data throughout the day 

The alternatives could also be used as adjunct treatments to the GLP-1 medications to help with the ultimate success of the drugs.

However, their ubiquity comes with inherent challenges, especially concerning product safety and navigating intricate regulatory frameworks.

One of the most common hazards associated with li-ion batteries is their tendency to overheat, potentially leading to thermal runaway—a chain reaction where rising temperatures exacerbate conditions until the battery ignites. Despite these risks, many consumers are unaware and engage in unsafe practices that heighten the likelihood of thermal runaway or combustion.

Leaving a li-ion battery on its charger, even after reaching full charge, is one such common habit. This overcharging significantly increases the risk of overheating and fire. Reports of fires linked to li-ion batteries span a wide range of products, from electric-bikes to gardening tools. Moreover, instances of consumer electronics equipped with these batteries overheating on airplanes have risen by 28% from 2019 to 2023.

Li-ion battery-related recalls have fluctuated over the past decade, typically mirroring the rise and fall in popularity of products like hoverboards and e-bikes. In 2024 alone, 15 consumer product recalls were issued for events involving li-ion batteries, affecting 870,000 units.

Managing risks in transportation

A single li-ion battery can cause significant damage if it overheats and ignites. That damage can be exponentially greater if multiple lithium-ion batteries are in close proximity and are not packaged safely and securely. This is more likely to happen during transportation of the batteries themselves or of products containing these batteries. If a single li-ion battery experiences thermal runaway, it can propagate to other batteries or combustible materials nearby, potentially resulting in large fires with severe consequences.

A single li-ion battery overheating and igniting can cause significant damage, but the risk escalates dramatically when multiple batteries are stored or transported in close proximity without proper safety measures. This is particularly concerning during the shipment of batteries or battery-powered products, where inadequate packaging can increase the likelihood of thermal runaway propagating to nearby batteries or combustible materials, potentially leading to large-scale fires with severe consequences.

To assist manufacturers safely ship li-ion batteries in accordance with regulations, the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) recently released an updated guide covering a variety of li-ion battery types, configurations, and sizes.

The guide specifically covers best practices for shipping damaged, defective, or recalled (DDR) batteries, which often pose the greatest safety risk. DDR li-ion batteries are restricted to transport by highway, rail, or vessel and must meet strict packaging and labeling requirements to mitigate potential hazards.

In addition to the DOT, the International Air Transport Association (IATA) recently revised its battery guidance for transporting lithium-metal, lithium-ion, and sodium-ion batteries by air and outlines the restrictions on using this form of transport.

Even for the most experienced companies, li-ion battery product recalls can be complex and costly. Mismanaged implementation can exposure manufacturers to regulatory scrutiny, consumer lawsuits, and reputational damage. Given the particularly hazardous nature of DDR batteries and the variety of additional requirements for transportation of any li-ion batteries, partnering with a third-party expert who specializes in product recalls and the removal of hazardous materials can help ensure a recall more efficient, effective, and safe recall process.

Looking ahead

Regulators in the U.S. and around the world are exploring ways to tighten oversight of li-ion batteries. In 2024, legislation passed in the U.S. House requiring the Consumer Product Safety Commission (CPSC) to issue a consumer product safety standard for rechargeable li-ion batteries used in micromobility devices, such as electric bicycles and scooters, to mitigate fire risks. The state of New York passed a comprehensive set of laws in July 2024 governing the use of li-ion batteries that, among other provisions, requires that any li-ion batteries used in micro-mobility devices, bicycles with electric-assist, or mopeds be manufactured in accordance with certain standards and specifications. Other states may follow suit, increasing pressure to enact national legislation.

In Europe, the EU adopted a new comprehensive Batteries Regulation in 2023, expanding producer responsibilities for portable batteries, among others, to cover waste management requirements. Meanwhile, in the UK, a Lithium-ion Battery Safety Bill is in committee in the House of Lords that would regulate the safe storage, use, and disposal of li-ion batteries. As regulatory scrutiny intensifies, manufacturers must take a proactive approach to risk management across the entire product lifecycle. This includes developing and testing recall plans, auditing shipping practices to ensure compliance, and taking the necessary steps to implement a robust recall response, including the safe disposal of hazardous products.

Learning from past challenges  

The findings of the parliamentary flood inquiry highlight several systemic issues that have hampered the effectiveness of disaster response in the past. These include delays in claims processing, lack of transparent communication, insufficient preparedness and inconsistencies in support for affected communities. 

Queensland and northern New South Wales (NSW) have been hit by severe La Niña-driven flooding, and entire regions have been experiencing prolonged inundation from the recent ex-Tropical Cyclone Alfred. During these events, many residents reported feeling abandoned or underserved during critical moments, reflecting a significant disconnect between service providers and those in need. Addressing these gaps requires a paradigm shift, with a stronger emphasis on fairness, accountability and customer-centric solutions that prioritise the needs and wellbeing of affected individuals.

Disaster response focused on the customer

A customer-centric approach to disaster response means placing impacted individuals and communities at the heart of decision-making processes. It involves not only providing immediate assistance, but also fostering trust, empathy and collaboration throughout the recovery journey. Key elements of this approach include:  

• Proactively engaging with stakeholders: Effective disaster management begins with open communication between insurers, government agencies and affected communities. Engaging stakeholders early allows for the identification of specific needs and expectations, paving the way for tailored solutions. Regular updates and transparency about processes can alleviate frustration and foster trust.

• Streamlining claims processing: One of the most common pain points during disaster recovery is delays in claims handling. Adopting technology-driven solutions, such as digital claims platforms and real-time assessment tools, can significantly reduce processing times. Moreover, simplifying claims procedures ensures that individuals and businesses can access support without unnecessary bureaucracy.

• Prioritising fairness and inclusivity: Recovery efforts must account for the diverse needs of individuals, including vulnerable populations such as the elderly, people with disabilities and those in remote areas. Equitable access to resources and services is essential to ensuring no one is left behind in the aftermath of a disaster.  

• Building long-term resilience: Beyond immediate recovery, fostering resilience against future events is critical. This includes educating communities on preparedness, investing in infrastructure improvements, and promoting climate adaptation strategies. Collaborative efforts between stakeholders can create a more robust framework for managing future challenges.  

Driving industry change  

The parliamentary flood inquiry has been a catalyst for rethinking disaster response across the industry. Its recommendations emphasise the need for structural changes, improved accountability and a renewed focus on the customer experience. These changes require collaboration between government bodies, insurers, loss adjusters and other service providers. By working together, we can transform lessons learned from past failures into actionable strategies that benefit both individuals and communities.

Sedgwick has taken proactive steps to align our practices with the recommendations of the parliamentary flood inquiry. These efforts reflect a deep commitment to supporting insurers, policyholders and communities affected by disasters.

1. Forging connections

We’ve introduced a comprehensive client engagement plan designed to foster stronger relationships with clients and stakeholders. This plan emphasises open communication, collaboration and delivering tailored solutions to meet each client’s unique needs. By actively engaging with all parties involved, we aim to bridge gaps in understanding and enhance the overall customer experience.

2. Implementing inquiry recommendations

Our operations team has thoroughly reviewed the recommendations of the Flood Failure to Future Fairness report, prioritising key areas for improvement. These include refining internal processes, enhancing transparency, and adopting innovative practices to better support our clients. By acting on these recommendations, we’re demonstrating our commitment to driving meaningful industry change.

3. Monitoring and supporting insurer needs 

We’re also focusing on the evolving landscape of disaster management, including the terms of reference for the parliamentary inquiry. This vigilance ensures readiness to adapt to new challenges and provide timely, relevant support to insurers. By staying ahead and keeping informed with emerging trends and issues, we can continue delivering solutions that align with the needs of our clients and their customers.

Looking ahead  

The release of the parliamentary flood inquiry report marks a pivotal moment for disaster response in Australia. It’s a call to action for all stakeholders to prioritise fairness, transparency and customer-centric solutions in addressing the challenges posed by natural disasters.  

Sedgwick’s proactive initiatives serve as a testament to the importance of aligning industry practices with these principles. By fostering engagement, implementing improvements, and remaining responsive to evolving needs, we’re helping to shape a more resilient future for communities affected by climate events. This commitment underscores the broader imperative for organisations to embrace innovation, empathy and collaboration in times of crisis.  

The ultimate goal is clear: ensuring individuals and communities affected by disasters receive the support they need to rebuild their lives with dignity and confidence, even in the face of increasing climate challenges.

> Learn more — explore our catastrophe response solutions for the Australia market

Impact of California wildfires spreads as far as Asia

According to Insurance Business magazine, the LA wildfires had financial implications for Asian insurers and reinsurers. For instance, South Korean insurers are anticipating losses around KRW90 billion due to their policy coverage in affected areas of California. DB Insurance had potential claims in the region of KRW 50-60 billion. Meanwhile, Korean Re was projecting smaller losses, estimated between KRW 15-30 billion. Despite these figures, both companies have stated that these losses are manageable and within their capacity. 

Whilst analysts have suggested the overall impact on insurers’ credit ratings would be minimal due to strong reinsurance arrangements and diversified portfolios, the growing frequency and severity of extreme weather events could drive up future reinsurance costs. This highlights the increasing importance of wildfire risk management in the Asia-Pacific region — both for local businesses facing direct threats and insurers with international exposures.

Rise of wildfires in Asia

In Asia, wildfires are often driven by a combination of natural factors and human activities, with agricultural practices playing a significant role. Each dry season, farmers across Southeast Asia engage work to clear forests and remove old crops in preparation for new planting. This method is a cost-effective way to replenish soil nutrients, but it frequently leads to uncontrolled fires that spread beyond the intended areas and cause widespread damage. 

These fires are not just a local issue. They often generate thick smoke and haze that cross national borders, affecting air quality in neighbouring countries. Indonesia’s forest and peatland fires, for example, have led to a severe haze crisis impacting Malaysia and Singapore and resulting in school closures, flight cancellations and health concerns. Similar cross-border pollution has been observed between Myanmar and Thailand, as well as northern Vietnam and Laos.

Wildfires represent a growing challenge for both insurers and businesses. As wildfire risks escalate in Asia, businesses operating in high-risk areas are increasingly recognising the need for innovative insurance solutions, improved fire policies and stronger regional cooperation to more effectively manage cross-border smoke pollution.

Challenges in BI coverage and wildfire claims

The key complexities of BI claims related to wildfires include policy interpretation issues, supply chain disruptions and evolving litigation trends.

1. Proving physical loss or damage

BI insurance traditionally requires direct physical loss or damage to trigger coverage. A wildfire directly burning a business’s property is a clear case, but disputes arise over smoke damage, soot infiltration and hazardous air quality, including haze.

• Structural damage: If a wildfire directly damages a building, BI coverage is likely triggered.
• Smoke/environmental contamination: Damage may not be immediately visible, so in these instances insurers assess whether factors such as embedded soot or degraded air quality constitute a tangible alteration of the property.
• Legal precedents: In connection with COVID, courts ruled that virus contamination did not constitute physical damage. However, wildfire smoke has historically been accepted as a cause of property loss (as prolonged smoke exposure can lead to lasting damages that go beyond what routine cleaning might remedy) — making this an area of legal dispute.

2. Civil authority coverage: proximity and causal links

Coverage under civil authority provisions further illustrate the nuances of BI policies. These provisions are intended to help businesses when government-mandated closures or evacuation orders limit access to their premises. Determining coverage under this clause typically involves examining the geographic proximity of the damage and the specific reasons behind the order. In such scenarios, insurers and policyholders work together to review evidence of nearby damage and related factors to clarify whether the policy’s terms are met.

• Proximity requirements: Most policies require that the fire cause physical damage within a specified distance (e.g., 1-5 miles). If an evacuation order is issued but the fire remains outside this radius, this will likely not be covered by the policy. 
• Causal link between damage and order: Need to establish whether the evacuation order was preventive rather than due to confirmed property damage. Some policies require that the order be issued directly because of property damage rather than a general safety precaution.
• Coverage limits: Civil authority coverage often has a 72-hour waiting period before it kicks in and is typically capped at 2-4 weeks or could be subject to a policy sub-limit.

3. Contingent business interruption (CBI): supply chain disruptions

CBI coverage addresses losses incurred when key suppliers or partners are affected by a wildfire. Commonly referred to as suppliers’ extension clauses, this protection is particularly relevant when a supplier’s disruption directly impacts a business’s ability to operate. The effectiveness of CBI coverage depends largely on the precise language in the policy. Several complications arise in wildfire-related CBI claims:

• Named vs. unnamed suppliers: Many policies require that affected suppliers be explicitly named. If a critical supplier is not named in the policy, the loss may not be covered. 
• Proving causal chain of loss: Businesses must prove their revenue loss was directly caused by the supplier’s wildfire damage, not general market conditions.
• Limitations on coverage for secondary suppliers: If a supplier’s supplier is impacted, the business may not be covered unless the policy explicitly allows multi-tier coverage.

4. Power outages 

Wildfires often damage electrical grids, leading to power outages that force businesses to close. Some BI policies provide loss of utilities coverage, but with strict limitations:

• Requirement for direct physical damage: Many BI policies only cover outages if the fire physically damages utility infrastructure (e.g., transmission station).
• Exclusion for preventative shutdowns: In Los Angeles and other regions, utilities conduct public safety power shutoffs (PSPS) to prevent wildfires. If an outage is caused by preventive measures rather than fire damage, this will likely not be covered.
• Waiting periods: BI coverage for power outages typically does not apply until 24-72 hours after the outage begins.

5. Concurrent causation 

Wildfire-related claims often involve multiple contributing factors (e.g., fire, smoke, power outages, flooding from firefighting efforts), which complicates coverage. Insurers must assess whether the dominant cause of loss is covered, whether any anti-concurrent causation (ACC) clauses apply, and how courts interpret concurrent causation in BI claims. 

In the UK, insurance policies typically follow the principle of proximate cause — meaning that if a covered peril is the primary cause of loss, the policy should respond. However, if an excluded peril (unrelated to the fire damage) is the dominant cause, insurers may deny the claim.

The Financial Conduct Authority (FCA) test case on COVID BI claims reinforced that if multiple concurrent causes contribute to a loss, insurers must analyse whether any covered peril played a material role. Although this was focused on pandemic-related losses, its principles may influence wildfire-related claims, especially concerning evacuation orders and smoke damage. 

ACC clauses, more common in the U.S., override this by stating that if an excluded event contributes in any way, the claim is denied entirely. For example, if a wildfire burns a business but firefighting efforts cause flooding that worsens the damage, the claim may be denied based on flood exclusions. Another example: If looting or vandalism occurs after an evacuation, BI claims may be denied under riot and theft exclusions.

COVID BI litigation in the UK has clarified that, in the absence of explicit ACC clauses, courts may apply a concurrent causation analysis, potentially broadening coverage for policyholders. 

What’s next?

As wildfire events increase globally, concurrent causation in BI claims will continue to be a key issue — shaping future litigation, policy wording and risk management strategies. The experiences and legal discussions emerging from COVID-related BI claims have also contributed to a broader understanding of what constitutes physical damage and how best to evaluate complex losses. 

With wildfires and haze pollution posing economic challenges in Asia, insurers and policyholders could consider more tailored solutions, such as parametric insurance models that trigger payouts based on pollution index levels. Governments and regulatory bodies may start introducing stricter policies on agricultural burning and urban emissions to mitigate future economic loses tied to BI risks.

By maintaining open communication and a proactive approach to risk management, businesses can better navigate the claims process while ensuring that coverage supports their recovery efforts.        

> Learn more — explore our forensic accounting and business interruption claims solutions for the Asia market

Consider a few other hail-related factoids: One of the largest pieces of hail ever recorded in the U.S. had a diameter of more than eight inches and weighed nearly two pounds! Imagine a projectile of that size coming toward your automobile or property at a speed of 100 miles per hour or more.

Hail’s impact on the auto insurance space is particularly relevant for those managing catastrophe (CAT) claims and appraisals, as timely response and efficiency are crucial in mitigating costs and meeting customers’ needs. As we enter the March-to-September peak hail season, the questions facing many insurers, who are also dealing with other record-breaking CAT events, are: What can we expect in 2025, and what can we do to prepare?

The growing challenge of hail damage

Hailstorms have long been a significant driver of insurance claims, and that’s expected to continue this year. According to the Insurance Information Institute, damaging hailstorms have surged in the past few years. Recent data shows some of the largest U.S. carriers are seeing significant increases in payouts, totaling billions of dollars. Contributing to rising costs are:

• Storm frequency and severity
• Storms hitting highlight populated areas (and populations migrating to more storm-prone areas)
• Inflation and increased prices for goods and services

Insurance carriers must prepare for hail season claim spikes, particularly as extreme weather events become more frequent.

Hail and wind damage impact all types of auto insurance policyholders — from individual consumers to entire fleets to manufacturers and dealership inventories. Some of the most expensive claims in recent years have involved auto dealers. In 2024, a single dealership in Oklahoma suffered more than $3.5 million in hail damage to over 170 new cars on their lot.

Beyond the substantial financial impact of hail damage, policyholders often experience frustration and delays when seeking auto repairs. After a major storm, area repair shops can be booked for weeks or even months, making it difficult to secure an appointment. No one wants to drive around in a dented car, and prolonged delays can erode insurance carriers’ customer satisfaction and loyalty.

The initial post-loss interaction between a policyholder and their insurance carrier can be pivotal in setting the tone for the entire claim. A seamless, thoughtful and empathetic approach reassures the claimant, helps control cycle time, and expedites resolution. Once contact is made and an appointment is scheduled, the priority shifts to completing the hail damage estimate quickly and accurately. Our team at Sedgwick averages 24–36 hours to finalize estimates (including thorough quality control (QC) procedures) on behalf of our clients, ensuring efficiency and precision.

Technology and partnerships in hail claims management

What else can carriers do to efficiently manage reserves and adjudicate claims while maintaining customer satisfaction?

Rather than reducing coverage options — which can create challenges for customers and other stakeholders — insurers can leverage technology and strategic partnerships to enhance claims processing and damage assessment. Advances in digital assessment tools, automation and streamlined repair programs provide a path to optimizing efficiency, reducing costs, and improving the customer experience. Effective solutions include:

• Mobile and drive-in inspections: Rapid response is crucial following a major hail event. We support a number of insurer clients in speeding up processes by setting up drive-in assessment sites on their behalf at centralized locations, such as big-box store parking lots or leased warehouses. These drive-in sites, which can be activated when a given region reports 200 or more claims, allow for significantly higher daily assessment volumes than traditional field inspections.
• 3D scanning technology: With 99% accuracy in hail damage detection, advanced 3D scanning (the auto version of MRIs for humans) reduces the risk of human error and expedites claims processing. This technology allows adjusters to focus on complex cases while automated scans handle routine inspections, thereby optimizing resource allocation.
• Paintless dent repair (PDR) programs: PDR techniques provide faster, cost-effective repairs of minor dents without requiring full body shop services. Given that many body shops have months-long backlogs, PDR programs help to expedite repairs and get drivers back on the road sooner. 
• Next-generation estimation tools: Advanced estimation software can instantly generate repair assessments based on scan data — reducing reliance on manual appraisals while enhancing speed and accuracy.

Additionally, strong partnerships with repair shops and service providers play a critical role in ensuring timely repairs and minimizing policyholder disruptions. Fast assessment times are essential, but if the policyholder can’t then get to a repair shop, that value is lost. By integrating leading-edge technology and fostering collaboration, insurers can navigate the complexities of hail damage claims while reinforcing customer trust and long-term loyalty.

Hail season preparedness strategies

Many carriers are responding to hail-related losses by revising coverage policies. But in today’s volatile climate, such measures may not be a sustainable long-term strategy. Instead, insurers should consider proactive solutions to mitigate risk while maintaining policyholder protection:

1. Enhancing CAT response infrastructure

As noted, planning for drive-in assessment locations in high-risk areas allows for rapid post-storm evaluations. Insurers should also form meaningful partnerships with third party administrators (TPAs) and technology providers that have specialized hail assessment expertise. Deploying mobile scanning teams and imaging tools further streamlines the process, reducing claim cycle times and expediting settlements. 

2. Improving claim processing efficiency

AI-driven damage estimation tools can significantly tighten appraisal times by analyzing images and generating instant repair cost estimates. This automation allows adjusters to focus on complex cases while facilitating rapid resolution of straightforward claims. Insurers can also implement real-time reporting systems that track claim volume, severity and estimated losses. This data-driven approach improves resource allocation and prevents bottlenecks in the claims process. Additionally, integrating mobile appraisal solutions enables remote assessments, reducing delays and enhancing policyholder satisfaction.

3. Bolstering policyholder support

Navigating the claims process can be stressful for policyholders, especially following a catastrophe. Bringing repair services directly to storm-hit regions and offering interim transportation options helps insurers maintain customer mobility and reduce disruption. Transparent communication is also critical. Keeping policyholders informed about their claim status and expected repair timelines fosters trust and reduces frustration, which reinforces loyalty even in challenging situations.

4. Leveraging local expertise

To ensure rapid and efficient claims management, carriers should seek partners that offer local claims experts who can be deployed rapidly when a catastrophe hits. This allows staff claims’ professionals to maintain their focus on other areas of the business while ensuring experts are available on the ground. These regional specialists also understand local repair networks, regulatory considerations, and hail damage patterns, bringing greater efficiency and stability to the resolution and customer service operation.

There are a number of promising solutions in play and on the horizon for managing hail and wind claims for auto, but managing the influx of information during CAT events can still be overwhelming. Dashboards can provide instant insights on large hail events, including the number of claims, their status, stage, and payments made and pending. The benefits are significant, as dashboards allows for real-time monitoring, quicker decision-making and more accurate reserves.

Weathering the storm

Hailstorms will continue to be a major concern for insurers, with 2025 likely bringing new challenges. However, the key to success isn’t in limiting coverages — it’s investing in innovative solutions and strong partnerships.

By embracing advanced technology, strengthening CAT response capabilities, optimizing repair processes, and collaborating with innovative partners, carriers can more efficiently manage hail-related claims. These forward-thinking approaches not only help to reduce cycle times and control costs, but also enhance policyholder satisfaction — ensuring businesses remain competitive in an evolving auto insurance landscape. In an era where extreme weather has become the rule rather than the exception, auto insurers who adopt these approaches will be better prepared to weather the storm and thrive.

> Learn more — explore our robust menu of auto claims solutions

Risk velocity, the time between notice of the event and its impact on the business, has increased significantly over the last decade.  Businesses must be prepared.  This begins with a strong risk management plan with the ability to recover from and or adjust quickly to the impacting event.   Although building resilience can be challenging, there are strategies that risk leaders can use to ensure their business can bounce back from disruption. 

Know the business

Resilience planning means fortifying and mobilizing business resources so that core operations will continue during disruption. This requires a strong pulse on business resources and operations. To do this, risk leaders should proactively map out key aspects of their business, like essential functions, teams and potential risks, and outline the current processes in place to combat these risks. 

As part of understanding the business, risk leaders should utilize data to track trends and determine how past stress or loss events have affected it. Risk data provides clear insights, making it an effective tool for getting other leaders to understand how risks impact core business decisions.

Get executive-level buy-in

Risk events impact the entire business, so every leader has a responsibility to understand and help manage them. To steer the business toward resilience, risk leaders should have regular conversations with other leaders, C-suite executives and board members about risk. Asking questions like “What does risk mean to your area of the business?” or “If a risk event happens, how would it impact your team?” can ensure that everyone is risk-aware and help incorporate the broader business into decision-making.

Thoroughly evaluate risk

While it’s important to understand the business and impact of past disruptions, it doesn’t paint the full picture. To thoroughly evaluate risks and their impact, risk leaders should use strategies like risk reporting and actuarial analysis and consider things like risk appetite and tolerance, financial impact of risk and predictability for different risk events. Combining these elements will help create a comprehensive risk management plan that builds resilience. 

Refine the plan

Lastly, it’s important for risk leaders to continuously reflect on their plan’s results so they can continue strengthening it over time. Were risk expectations met, exceeded or missed over the year? How did risks compare to projections at the start of the year? How did risks impact the business overall? Answering questions like these and sharing the results with other leaders is crucial to maintaining a strong risk management plan that builds resilience. 

When risk leaders understand their business, get buy-in from leadership, thoroughly evaluate risk and continuously refine their risk management plan, they will be prepared to help their businesses recover from disruptions when they occur. 

At Sedgwick, we’re here to help you navigate the unexpected. Our global solutions can help you build resilience and keep your operations moving forward. Learn more here.

The executive order identifies a need to adopt “fresh thinking” on topics that span multiple industries, including nutrition, physical activity, healthy lifestyles, over-reliance on medication and treatments, the effects of new technological habits, environmental impacts, and food and drug quality and safety.

The Commission will be chaired by recently confirmed Secretary of Health and Human Services, Robert F. Kennedy Jr., and Vince Haley, Assistant to the President for Domestic Policy, will serve as Executive Director. The group will also include the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, the Commissioner of the Food and Drug Administration, the Director for the Centers for Disease Control and Prevention, and the Director of the National Institutes of Health, among others.

Policy goals of the Commission

According to the establishing executive order, “it shall be the policy of the Federal Government to aggressively combat the critical health challenges facing our citizens, including the rising rates of mental health disorders, obesity, diabetes, and other chronic diseases.” This central policy is the focus of the newly formed Commission.

Some of the supporting guidelines for achieving this goal include the following:

• All federally funded health research should provide transparency and open-source data, and should avoid or eliminate conflicts of interest that skew outcomes and perpetuate distrust;
• Health-related research funded by the federal government should prioritize gold-standard research on the root causes of why Americans are getting sick;
• Agencies shall work with farmers to ensure that United States food is healthy, abundant, and affordable; and
• Agencies shall ensure the availability of expanded treatment options and the flexibility for health insurance coverage to provide benefits that support beneficial lifestyle changes and disease prevention.

Throughout the executive order, emphasis is placed on addressing chronic illness in children, and it is noted that an estimated 30 million children in the U.S. had at least one health condition in 2022. The first directive of the Commission is to conduct a study of the scope of childhood chronic disease and any potential contributing factors. Within 100 days, the Commission must submit a Make Our Children Healthy Again Assessment to the president.

The Commission is to consider many areas in the assessment, including a comparison of childhood chronic disease in the U.S. to other countries and an evaluation of potential risks using rigorous and transparent data. Specifically, the potential threats posed to children by the over-utilization of medication, certain food ingredients, chemicals, and other exposures. Other areas that should be considered in the assessment are identifying and reporting on best practices for preventing childhood health issues, and restoring the integrity of science by eliminating “undue industry influence, releasing findings and underlying data to the maximum extent permitted under applicable law, and increasing methodological rigor.”

Looking ahead

While the Commission is currently in the review and analysis phase, it is likely to move quickly towards the rule-making phase. The Trump Administration has identified health regulations as a priority, and this executive order is the first step in the process. Although the specifics of potential reforms remain unclear, members of the food and drink and pharmaceutical industries should expect regulatory changes over the next four years.

Legal experts with DLA Piper highlight several potential implications for businesses, including increased scrutiny of ingredients in the food supply, changes to nutrition policy such as overhauling dietary guidelines, and heightened scrutiny of the use of prescription medicines to treat chronic disease, cognitive differences, and mental health conditions.

The experts also note that both the House and Senate have established their own MAHA caucuses, which are aligned with the Trump Administration on goals to lower the rates of chronic illness. This coordinated effort means that businesses may face new requirements from both regulators and policymakers.

Businesses should closely follow progress of the Commission and take advantage of opportunities to engage during the process. They should monitor activity in Congress, whether it be hearings on key issues or the introduction of new legislation. It will also remain critical for businesses to regularly assess their recall and communications plans to account for emerging risks and to ensure transparency with customers.

Trusted by the world’s leading brands, Sedgwick brand protection has managed more than 7,000 of the most time-critical and sensitive product recalls in 100+ countries and 50+ languages, over 30 years. To find out more about our product recall and remediation solutions, visit our website here.