Workers’ Compensation is a front-and-center issue for employers, the insurance distribution system, Comp boards, and state legislatures. Over the years, skyrocketing medical costs, an increase in loss frequency, severity and fraudulent claims, and other factors have impacted the Workers’ Comp market, resulting in a high combined ratio and poor underwriting results. To reverse this trend, we’re now seeing rate firming, carrier contraction, and appetite restriction. This has left employers, especially those in tough classes, searching for a home for their Workers’ Compensation program. Even “main-street” businesses with one loss have had a hard time at renewal.
Insurance agents and brokers with access to competitive markets will not only capitalize on the ability to secure coverage for their clients, but they can also now leverage an improving economy set to spur the Workers’ Comp industry with an increase in jobs and payroll exposure.