For nearly a decade, workers’ compensation has been at the forefront of digital distribution of commercial insurance. Several major carriers have jumped into the digital distribution pond, joining fast-growing startup insurers, some of which have become sizable carriers. Meanwhile, other carriers report struggling to maintain market share amidst heightened competition on price, even within higher hazard groups. With the recent profitability of the workers’ compensation line, in comparison to mixed results across the rest of property and casualty, it seems likely that competition will remain fierce.

This report is a primer on how to be successful in the digital distribution of workers’ compensation insurance. Celent believes carriers must do well in three areas:

• Choosing the right distribution channel
• Delivering a compelling digital customer experience
• Controlling customer acquisition costs

These report explores each of these three areas. Additional recommendations are provided about laying a solid foundation for carriers to realize their digital distribution aspirations.