Today’s issue of WorkCompRecap features the release of a new AM Best Special Report that found that the workers’ comp market has likely entered a soft market phase based on a declining trend in price increases that began in 2013.
The report examines the state workers’ compensation funds sector (which compete, but also act as a last resort, and may take in more businesses who have trouble getting coverage in hard market conditions) and cited rate declines in Q1 2015 through Q2 2016 alongside a more competitive environment generally in property/casualty commercial lines. Best noted that while state funds’ net premiums written (NPW) increased for the fifth year in a row in 2015 to the highest since 2006, and underwriting leverage measures for the competitive state funds composite are at low levels and indicate solid capitalization, the recent declining pricing trend and other issues remain concerns going forward.
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