WC: Preparing for Tough Times Ahead
Monday, January 15th, 2001 Workers' CompensationBatten down the hatches! After years of affordable rates, many risk managers face steep price hikes in workers‘ compensation costs. Many experts think that cost increases will heighten, for various reasons. The National Council on Compensation Insurance reports deteriorating workers‘ compensation loss ratios. Much of this is due to past under-pricing of risks by insurers, rising claim costs, proposed state rollbacks of legislative workers‘ compensation reforms and legal challenges to workers‘ compensation as an exclusive remedy for injured workers. A recent study by the research firm Conning & Company reports that more than 90% of workers‘ compensation insurers polled think the industry will see higher premiums, suggesting that an era of price competition is ending.
