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Fitch: Workers’ Comp Profits Strong

Fitch Ratings says the U.S. workers’ compensation insurance market reported strong underwriting performance for the third consecutive year in 2017.
September 11, 2018

Fitch Ratings says the U.S. workers’ compensation insurance market reported strong underwriting performance for the third consecutive year in 2017, with an industry statutory combined ratio of approximately 92 percent. However, Fitch warned that a steady decline in premium rates from increased competition will ultimately lead to weaker underwriting results. Moreover, the industry could generate underwriting profits this year, but workers’ compensation results will move toward break-even in 2019, according to Fitch, which adds that factors that can negatively affect future industry performance include premium rate pressure, increasing medical loss severity, and erosion of past reform benefits in key states.

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