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Current State of Workers Comp – Time To Sound Alarm?


A.M. Best Current State Of Workers Comp

Should we sound the alarm for the current state of Workers Comp?

A.M. Best had recently published a few figures that were worse than I had expected for the Workers Compensation markets. A.M. Best has always seemed to make the best predictions of any of the rating agencies overall. Most of the risk managers and Workers Compensation consultants such as this company had expected a downturn which A.M. Best confirmed completely.

Logo of A.M Best Current State of Workers Comp
(c) A.M Best

Nationally, the Workers Comp market has been affected in the following manner:

  • Very rapid Workers Compensation regulatory changes
  • Carrier and State Fund Net Income fell by 62% – ouch!
  • Net Premium Premiums Written (NPW) fell by 12% while the rest of the property casualty market only fell 2%.

Quite a few of our risk manager clients and I have identified two areas that A.M. Best also points out in their analysis. Soft pricing and the rise in unemployment seem to be the areas that account for the sharp decrease in the Workers Compensation premiums written. I checked on the true unemployment rate last week, not the governmental rate. The real rate is 16%.

Does this mark the start of a very hard Workers Comp market? I had thought that two years ago. Competition has kept the market very soft.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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