According to the 2018 USI Insurance Market Outlook report, workers’ compensation rates in 2018 will vary. Further, increasing medical costs (6% year-over-year growth rate) will continue to impact workers’ compensation as well as liability loss totals.
The following text from the USI report provides more insight into this 2018 forecast:
- “Pricing will be driven by maintaining or increasing market share; although profitable market share is most important. Expect to see more underwriting discipline exercised. For clients with good risk profiles, positive loss experience, and the right appetite for risk retentions, competition will remain very strong.
- We expect a continued upward movement of retentions due to increases in claim development/severity.
- A client’s pre- and post-loss mitigation activities will be key underwriting factors, as these activities show a measurable effort to slow loss development.
- Pricing for loss-sensitive programs is likely to be at to down 5% for clients with clean and/or improving loss experience. Clients with deteriorating loss experience will see a +5% rate fluctuation and may need to adjust retention levels accordingly.
- Guaranteed-cost programs are expected to experience an estimated -10% to +10% change; exceptions will be for clients with extremely clean loss experience. Guaranteed-cost pricing will also vary by a client’s specific state payroll distribution due to states’ legislative pressure on the adequacy of rates.”
For your convenience, here is a link to the USI report: click here
*The materials provided on this website are for informational purposes only. The materials are not for the purpose of providing legal advice. Please contact your legal counsel to obtain official advice regarding legal matters.