Search
 

Profitability Challenged in a Workers' Comp Market Beset by Uncertainties

For workers compensation insurers, profitability is the greatest near-term challenge, as accident-year combined ratios increase, and uncertainty in employment and medical-claim trends weighs on the sector, according to a recent report.

By Phil Gusman | Updated on December 27, 2012

For workers’ compensation insurers, profitability is the greatest near-term challenge, as accident-year combined ratios increase, and uncertainty in employment and medical-claim trends weighs on the sector, according to a recent report.

The Moody’s Investors Service report, “U.S. Workers’ Compensation Market: Sector Profile,” notes that premiums have increased in 2011 and 2012, alleviating some of the rate inadequacy affecting the sector, “but further significant strengthening will be required to improve underwriting margins to earn acceptable operating returns and to offset the impact of sustained low interest rates.” 

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.