A competitive rate environment persists in workers' comp as insurance companies continue to leverage the line's strong performance to offset struggles seen in other casualty programs, according to analysis from Arthur J. Gallagher & Co. (AJG).
During the final quarter of 2022, the median rate increase was 0.3% for workers' comp, according to AJG, which reported that around 48% of companies saw this modest bump.
However, workers' comp is not immune to pressures from the current economic environment, as AJG reported inflation is driving up claims costs. Given the long-tailed nature of the line's claims, the full impact of medical and wage inflation has yet to be felt.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
