Fitch: Trouble Ahead for Workers' Comp Sector

The average combined ratio for the workers' compensation line is expected to rise to the “mid-90s or higher” in 2024 after nearly a decade of record lows, “given flat or declining premium volume, potential for rising claims costs from medical inflation, and a reduction in favorable reserve development,” according to a report released Thursday by Fitch Ratings Inc. The comp line is the strongest-performing commercial product for the U.S. property/casualty industry, with the rating agency reporting that the sector has had nine consecutive years of underwriting p...