Regulatory reforms of workers' compensation systems in severallarge states have driven down losses for insurers and cut premiumsfor risk managers, while improved loss control and safetyinitiatives have cut frequency of claims and saved thousands oflives, but threats to insurer profitability loom, according toRobert P. Hartwig, president of the Insurance InformationInstitute.

Indeed, while the line is enjoying a terrific run, Mr. Hartwigcautioned that not all is well with workers' comp, warning thatcosts–and premiums–will eventually rebound thanks to soaringmedical costs and demographic challenges, requiring disciplinedunderwriting and cost management to maintain the line'sprofitability.

“It's easy to feel good about workers' comp today,” Mr. Hartwigsaid during his keynote address here at the Workers' CompensationEducational Conference, which launched the National Trends Programput together by National Underwriter. “I could have stood here sixor seven years ago and said it's very hard to feel good about thisline. We've done a 180-degree turn in this business.”