Today’s issue of WorkCompRecap features the release of a new report from Fitch Ratings that after many years of underwriting losses, the workers’ comp line generated a significant profit in 2015.
Fitch noted that the underwriting combined ratio dropped from a recent cyclical high of 117% in 2011 to 95% in 2015. Premium revenue growth has tapered more recently, but averaged more than 5% for the last three years and was 3.5% in 2015. Market share was also found to have shifted significantly among players in the last five years, and with competition heating up Fitch expects a return to an underwriting loss by 2017 as price competition intensifies partly due to abundant market capacity.
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