Fitch Ratings Says WC Cycle Peaked, Prices Going Down

The workers' compensation insurance market will continue to improve in 2004. However, rating agency Fitch Ratings warns that profitability may peak in 2004 as pricing momentum has moderated and is less likely to keep pace with future loss cost changes, according to a new report. "While underwriting results have improved significantly in the last two years, current information indicates that rates are flat or declining for a significant portion of workers' compensation buyers," said James Auden, Senior Director, Fitch Ratings. Citing NCCI data, Fitch notes, "A continuing trend of increasing...