Comp Combined Ratio to Hit 100% Next Year, Analysts Say

Underwriting profitability in the workers’ compensation sector is expected to decrease this year and evaporate in 2018, according to a Tuesday report from Moody’s Investors Services. Moody’s is forecasting an industry combined ratio of 99.5% this year and 100% next year, driven by increasing rate pressure. Last year’s combined ratio of 99% was a deterioration from 96% in 2015, Moody’s said. The workers’ comp industry has been benefitting from the economic recovery and job growth. Last month’s unemployment rate of 4.4% was down substantially from...