Nationwide results for workers compensation insurance have deteriorated for several years, with the composite combined ratio projected to exceed 120 percent for 2011. Overall total worker’s compensation premium has dropped more than 30% since 2005. This decrease is mostly due to the significant job losses over the past 3-4 years. During 2011 and going into 2012, primary rates have been increasing on average in the mid-to high single digits.
There is no shortage of uncertainty in the workers compensation market today, with a number of continuing conditions set to create a difficult 2012:
- Primary loss ratios and combined ratios are approaching 1999-2000 levels in the 115 percent to 120 percent range
- There was an uptick in loss frequency last year for the first time in roughly a decade
- Job growth has been sluggish, because of a stagnant economy
- Investment rates for premium remain dismal
- Threats of inflation remain
- Reserve creep continues
- Increasing estimates of market reserve deficiency
- Competition in the primary market and the use of discounts is offsetting any bureau rate increase recommendations
Total Team Solution's Pay As You Go program will remove down payment requirements, provide you with a monthly premium charge based on actual submitted wages, and our program will remove the headache of a wage audit. To learn more - please contact
