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This Just In ...
In the third quarter of 2019, workers’ compensation premiums continued to drop, reflecting decreases in loss costs at the regulatory level and continuing soft pricing in the marketplace, reported S&P Global Market Intelligence (S&P GMI).
The workers compensation industry had a combined 2.2% year-over-year drop in direct premiums earned in the third quarter of 2019, said S&P GMI. The top 20 workers' comp writers posted a decline of 1.7 percent in the same period.
Falling loss costs and heightened competition have been putting downward pressure on work comp rates for a decade now. Health and safety training have mitigated hazards and lost time due to accidents and injuries has been reduced.
A third-quarter survey by The Council of Insurance Agents & Brokers found that some carriers are even discounting workers' comp rates as a way to offset increases for other business insurance lines experiencing elevated loss costs.
However, cuts to workers compensation are not expected to continue. Analysis by S&P shows that the industry's direct incurred loss ratio ticked up to 45.95 percent in the third quarter from to 42.30 percent a year earlier.
One fear among workers compensation experts is that increased use of medical technology could start driving severity in workers' comp expenses. Even though medical advances are helping people heal faster and get them back to work more quickly, it is expensive.
The National Council on Compensation Insurance, which recommends premium rates to state regulators, is forecasting an increase in the workers compensation combined ratio to 87 percent for 2019 from 83 percent in 2018.
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In this issue:
This Just In...
When Are Workers Comp Claims Denied?
Workers Compensation Insurance Execs Look into the Future
Can Second Injury Funds Help Reduce Your Comp Costs?
Top 5 Workers Comp Fraud Schemes
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