U.S. Workers’ Comp Insurers Reduce Rates Across 36 States in Q1

U.S. workers' compensation insurers lowered rates in three dozen states during the first quarter, according to an S&P Global Market Intelligence analysis.

Source: S&P | Published on May 25, 2023

Workers Comp injury costs

U.S. workers’ compensation insurers lowered rates in three dozen states during the first quarter, according to an S&P Global Market Intelligence analysis.

The Hartford Financial Services Group Inc. led the field by securing approval for 79 rate cuts across nine states for an aggregate calculated premium change of $22.3 million.

AmTrust Financial Services Inc. was second, receiving approvals for 39 rate reductions in the quarter for an aggregate calculated premium change of $20.3 million.

The largest single rate decrease was a 5% rate cut by Missouri Employers Mutual Insurance Co. that will lower its premiums by $9.7 million. The rate reduction went into effect on Jan. 1 for both new and renewal businesses and is expected to affect about 13,500 policyholders.

Georgia, South Carolina approve hundreds of cuts

Regulators in Georgia were highly active as workers’ comp insurers operating in the state obtained approvals for 206 rate decreases, for an aggregate calculated premium decrease of $116.1 million. South Carolina was also very active during the quarter, as its regulator signed off on 314 rate decreases for an aggregate calculated premium change of $60.1 million.

Sirius increases rates

There were fewer rate increases across the country than during the previous quarter, with the most significant rate hike in California. SiriusPoint Ltd. secured an 8.3% rate increase there for a calculated premium change of $6.6 million. The new rate went into effect on Feb. 24 for both new and renewal businesses.

 

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