Before I make my annual predictions for the coming year, I decided to find out what other experts are saying and what external factors may drive the industry. Here’s a quick summary.
- Work comp combined ratios will continue to improve as premiums hit an eight-year high this year; we can expect continued good news in 2015.
- These good times are driven by a rapidly-improving employment picture, continued decline in frequency, and relatively stable pricing.
- 15 states will see rate decreases next year, and most of the other states (California included) will see lower increases than in 2014. PropertyCasualty360
- Florida’s looking at a 5%+ decrease, North Carolina rates will drop 3.4%, and Washington State employers will see an increase of just under 1%.
- Premium rate increases will remain in the low single digits – MarketScout
- Across almost all sectors, revenues will increase adding profits to coffers and wages to workers
Overall, combined ratios are looking good, premiums will increase due to relatively stable pricing, rising wages, and rising employment.
Next up, my take on what else will happen next year.