A number of challenges continued in the workers’ compensation segment throughout 2010, causing additional decline in premium volume and deterioration of underwriting results, according to A.M. Best.

While the line has dealt with the issues of competitive pricing, further rate reductions in most states, weak macroeconomic factors, growing medical costs and an uptick in claim frequency, A.M. Best notes in “Best’s Special Report,” there is reason for hope: Employment and payrolls have stabilized, and premium growth in 2011 looks to be positive for the first time since 2005.

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