Bijan Bijarchi, a VP at York Risk Services, speaks with during the 2015 IRMI Energy Risk and Insurance Conference about trends in workers compensation.

According to Mr. Bijarchi, “the price of oil has a direct impact on claims in the oil and gas industry and we are seeing a marked increase in claims frequency as a result of lower prices since 2014.”  New claims are treated with some suspicion because, in some cases, they are not reported right away because employees are worried about losing their jobs.

In addition, Mr. Bijarchi says the energy workforce is aging. “50% of the employees in the energy industry are over the age of 50…(and) 71% of geophysicists and engineers in the energy industry are retiring within the next 5 to 10 years.”  The industry needs to recruit a lot of talent.

Mr Bijarchi suggests risk managers do two things to minimize exposures.  First, they should visit their locations in order to understand exposures, as well as the culture and morale at different locations.  Secondly, “they should have a robust RMIS platform that is easy to use. Engage with service providers and expect/demand the best in analytics.

For more from the IRMI Energy Risk and Insurance Conference, visit the IRMI website, or the On Demand Library

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