Oldwick, NJ -(BusinessWire)- AM Best has revised its market segment outlook to stable from negative for the U.S. workers’ compensation insurance market, according to a new AM Best report.
The Best’s Market Segment Report, titled, “Market Segment Outlook: U.S. Workers’ Compensation,” states that the revision is based on the following factors:
- Unexpectedly muted impacted of the COVID-19 pandemic;
- Solid risk-adjusted capitalization;
- Redundant loss position; and
- Favorable combined ratios.
The impact of COVID-19 on insurers’ balance sheets and operating performance has been somewhat muted. AM Best believes the segment’s solid level of risk-adjusted capitalization will withstand the effects of the pandemic. Although the segment remains in a redundant loss position, that redundancy is diminishing. The segment also continues to report favorable combined ratios driven by consistent loss ratios. Underwriting results have deteriorated only slightly, benefiting from lesser fraud, fewer workplace accidents and lower defense costs.
There are however, offsetting factors that AM Best will continue to monitor for longer term implications, including rate decreases and intensifying competition.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=315015.
To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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Source: BusinessWire