Of more immediate concern, according to Fitch Ratings, is growing pressure from medical inflation, which had been relatively tame during 2022. For the past 12 months (ending Nov. 30, 2022), the medical consumer price index (CPI) was up 4.2%, compared with 1.7% during the same period in the previous year. (Credit: Rawpixel.com/Shutterstock.com) Of more immediate concern, according to Fitch Ratings, is growing pressure from medical inflation, which had been relatively tame during 2022. For the past 12 months (ending Nov. 30, 2022), the medical consumer price index (CPI) was up 4.2%, compared with 1.7% during the same period in the previous year. (Credit: Rawpixel.com/Shutterstock.com)

Heightened focus on risk management and workplace safety have led to long-term improvements in claims frequency for workers’ comp, but unfavorable pricing trends, a competitive market and other pressures have the potential to reverse this trend, according to Fitch Ratings, Inc., which reported this could result in underwriting results fall back to a break-even point.

Despite P&C insurers facing brutal headwinds from inflation, economic disruption and pandemic-driven loss-cost uncertainty, the workers’ comp sector remained resilient and was the strongest performing large-product line, Fitch Ratings reported. From 2017-2021, the combined ratio for workers’ comp was 90%, and Fitch Ratings said 2022 should only see a modest change and is projecting a combined ratio of 92% for full-year 2022.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • 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.

Already have an account?

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

More from this author

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.