Regulatory reforms of workers' compensation systems in several large states have driven down losses for insurers and cut premiums for risk managers, while improved loss control and safety initiatives have cut frequency of claims and saved thousands of lives, but threats to insurer profitability loom, according to Robert P. Hartwig, president of the Insurance Information Institute.

Indeed, while the line is enjoying a terrific run, Mr. Hartwig cautioned that not all is well with workers' comp, warning that costs–and premiums–will eventually rebound thanks to soaring medical costs and demographic challenges, requiring disciplined underwriting and cost management to maintain the line's profitability.

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

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