From The NU Online News Service, Oct. 13, 3:11p.m.
A.M. Best is out with its “Best’s Special Report” which confirms that the workers compensation line still faced a number of challenges through 2010. The workers’ comp line is among the largest in the U.S. property and casualty industry and among the largest commercial lines, A.M. Best explains. It makes up nearly 8.0 percent of total industry premium volume and about 16 percent of all commercial-lines premium in 2010.The overall P&C industry’s underwriting performance weakened again in 2010, with workers’ comp being among the lines that experienced the greatest deterioration, according to the ratings agency.
While the line has dealt with the issues of competitive pricing, further rate decreases, weak macroeconomic factors, growing medical costs and an uptick in claim frequency into 2011, A.M. Best notes in “Best’s Special Report,” there still may be reason for hope. Employment and payrolls have stabilized and premium growth looks to be positive for the first time since 2005.
