Today’s’ WorkCompCentral arrives with a solid piece[sub req] from Greg Jones detailing the current work comp insurance market environment, which III’s Bob Hartwig characterizes as “firming”; rates are up but not (yet) into the double digit territory which is Hartwig’s definition of “hard”.
It’s been a long five or six years, rates are at historic lows in many states, and the hardening is spotty – some states (Texas) are still seeing rates that are flat or nearly so, while others (Florida) are looking at big increases.
For now, the question is not “when will the market harden?”, rather it is “how fast and how much are rates going to increase?”
TPAs are hoping the answer is “very soon and a lot”, and most insurers are as well – especially the ones who have reserve deficiencies…
What does this mean for you?
Realism in pricing is good, even though prices are up for employers, the recent pricing was simply too low. If it had continued, real damage would have been done to lots of insurers, and we’d be looking at insolvencies and a very hard market coming very quickly.
Jan
13
