Today’s issue of WorkCompRecap features the release of a new market segment report from AM Best that found workers’ comp underwriting results continued to outpace the rest of the property/casualty sector in 2022, as they benefited from the long-term decline in workplace accidents and a reduction in fraudulent claims.
Key findings included that the workers’ comp segment reported a combined ratio of 87.8 in 2022, almost 15 percentage points lower than 102.4 for the overall P/C segment. The combined ratio for 2022 also included favorable loss development on older accident years totaling $6.5 billion, which reduced the reported combined ratio by approximately 13.5 percentage points. Best also notes that workers’ comp has benefited from the largest U.S. wage growth in over 25 years coupled with strong job growth, which has helped increase its overall premium to pre-pandemic levels.