For workers compensation insurers, profitability is the greatest near-term challenge, as accident-year combined ratios increase, and uncertainty in employment and medical-claim trends weighs on the sector, according to a recent report.

For workers compensation insurers, profitability is the greatest near-term challenge, as accident-year combined ratios increase, and uncertainty in employment and medical-claim trends weighs on the sector, according to a recent report.

Progressive Corp. says its November 2012 net income declined 38 percent relative to the same month a year ago to $77.7 million, despite net premiums written increasing by 5 percent.

A group of 19 U.S. property and casualty reinsurers saw its underwriting profit for the first nine months of the year improve from a loss of over $2 billion in 2011 to a gain of just under $1.4 billion in 2012.

More fidelity/crime insurance accounts are seeing rate increases as 2012 progresses, and overall, this segment of the market is described by insurance-broker Marsh as relatively stable in terms of both rate and available capacity.

Industry losses from Sandy would need to reach $50 billion in order to materially erode reinsurers capital base, according to an analysis by Standard & Poors.

S&P believes reinsurers can withstand losses well outside the range of current estimates, but says some market participants believe loss amounts could be 30-50 percent higher than estimated due to the hurricane-deductible debate in some states.

Agent and broker employment in September experienced an expected decline, but the size of the drop was unusual, according to Insurance Information Institute President Robert Hartwig.