State funds’ share of the nation’s work comp premium dollar increased 7.1% last year, the first net gain in several years.
As state funds generally grow when commercial carriers’ underwriting gets tighter, this is yet another data point we’ve seen that indicates the work comp market is hardening
The report from AMBest (thanks WorkCompWire) specifically noted one of the reasons for state funds’ growth was a stronger pricing environment. Higher prices follow higher combined ratios: funds’ calendar year combined hit a very painful 134.9 in 2011.
This news comes on the heels of reports from agencies of firming pricing and indications that some larger employers are also expecting higher work comp premiums.
Anecdotally, several HSA consulting customers point to somewhat tougher underwriting decision making coming from home offices, higher rates, and more “selectivity” re new business.
Jul
23
