An insurance research firm is predicting that a picture of “slowly deteriorating underwriting results” will begin emerging for workers’ compensation this year.
The report from Conning says that loss costs may start increasing faster than premium growth due to flattening frequency of accidents, accelerating severity of injuries and cost-shifting from group health to workers’ comp. The firm predicted that combined ratios could reach 105% by 2017.
Accident frequency is increasing as more employees enter the workforce following the recession, Conning said, and many o...