U.S. workers' comp insurance is a tough business to be in, what with sagging prices, rising costs and disruptive environments in many states, according to Standard & Poor's Ratings Services.

The firm published an article today warning that "Weakening Rates Could Squeeze U.S. Workers' Comp Insurers Later This Year."

S&P described the comp insurance sector as highly regulated, with differing rules in every state. Besides the regulatory challenges, "players in this market must also contend with the long-tailed nature of claims, persistently high medical cost inflation, and the possibly disruptive effect of periodic reforms and state-run funds," said S&P.

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