Rate Decreases May Start Slowing in New Year, Analysts Predict

Workers’ comp insurance rates are expected to keep falling in the new year, observers say, although some cite increased hiring of inexperienced workers and rise in million-dollar claims as potential problems on the horizon. Workers’ compensation rates have been dropping since the fourth quarter of 2015, according to investment analysts with Keefe Bruyette & Woods. That reflects steadily improving underwriting profitability, they said, as a result of benign loss trends and growth in payroll and premiums due to the strong economy. But KBW is expecting smaller workers’...