The Best’s Special Report, titled, “U.S. Workers’ Compensation Delivers Underwriting Profit Despite Rate Deterioration,” states that during 2015, the combined ratio improved 5.5 points to 96.0, marking the fifth consecutive year of solid underwriting performance.
Net premiums written (NPW) for the workers’ compensation line in 2015 totaled
State funds comprise a large portion of the workers’ compensation composite and significantly influence the segment’s underwriting results. Three of the four largest companies in the workers’ compensation composite—State Insurance Fund WC Fund,
However, despite the improvement in operating performance, rates have declined every quarter since the start of 2015, with a 4.3% drop in the second quarter of 2016. These quarterly rate declines create some uncertainty on how long the improved underwriting results can be sustained.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=254513.
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