Workers' Comp Improving But Not Yet Profitable

NU Online News Service, July 16, 12:18 p.m.EDT?Firmer pricing is driving improved insurer results inthe workers' compensation line, but profits remain elusive due toresidual effects from the previous soft market, according to areport by Fitch Ratings in Chicago.

"Current results indicate that pricing, though improved, isstill insufficient to produce adequate returns on capital," notedJames Auden, senior director of Fitch Ratings, in a statementsummarizing the report. Rates will have to rise even further inorder to keep pace with loss costs, the report points out.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.