Of more immediate concern, according to Fitch Ratings, is growing pressure from medical inflation, which had been relatively tame during 2022. For the past 12 months (ending Nov. 30, 2022), the medical consumer price index (CPI) was up 4.2%, compared with 1.7% during the same period in the previous year. (Credit: Rawpixel.com/Shutterstock.com) Of more immediate concern, according to Fitch Ratings, is growing pressure from medical inflation, which had been relatively tame during 2022. For the past 12 months (ending Nov. 30, 2022), the medical consumer price index (CPI) was up 4.2%, compared with 1.7% during the same period in the previous year. (Credit: Rawpixel.com/Shutterstock.com)

Heightened focus on risk management and workplace safety have led to long-term improvements in claims frequency for workers' comp, but unfavorable pricing trends, a competitive market and other pressures have the potential to reverse this trend, according to Fitch Ratings, Inc., which reported this could result in underwriting results fall back to a break-even point.

Despite P&C insurers facing brutal headwinds from inflation, economic disruption and pandemic-driven loss-cost uncertainty, the workers' comp sector remained resilient and was the strongest performing large-product line, Fitch Ratings reported. From 2017-2021, the combined ratio for workers' comp was 90%, and Fitch Ratings said 2022 should only see a modest change and is projecting a combined ratio of 92% for full-year 2022.

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Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]

Commercial Lines
Workers' Comp