After many years of losses, underwriting performance for the workers’ compensation line generated a significant profit in 2015, according to a new report from New York City-based Fitch Ratings.
The report also notes that competition is heating up, and Fitch expects a return to an underwriting loss by 2017 in the line.
“The workers comp insurance market saw a sharp turnaround in the last few years due to past premium rate increases, stable loss cost trends and improved loss reserve experience,” Jim Auden, Fitch's managing director, said in a statement. "However, this performance will likely be unsustainable as price competition intensifies due in part to abundant market capacity."
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
