Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Will The Upcoming Elections Have Any Effect on Workers Comp?


Upcoming Elections – Effect On WC

Will the Upcoming Elections have any effects on Workers Comp?   This is now the most popular question that I receive from our readers.  This question pops up often when there is a Presidential election.

Graphic of Romney tag and Obama Tag Upcoming Elections In Street Sign
(c) 123rf.com

The answer is yes and no.  I am sorry to be so vague.  The election may have some type of effect depending on the business client after the elections.  As we all know, the business climate is touchy at best.  As with most businesses, the Workers Comp environment will spin off removing any unknown variables.

If the business climate changes for the better, the insurance carriers will be able to better invest the premiums they receive which will soften the market.   The market as of now is still somewhat soft.

However, the market cannot stay soft for very much longer.  Almost all the insurance execs think the market will harden over the next few years. In my opinion, if an insurance carrier can receive a higher return on investment, they will look to be even more competitive as they can make more $$ off investing the premiums in the stock market.

The bond market and savings rates have been and will be anemic for years to come.  The carriers will look to invest in the stock market heavily at some point in the future.  I am sure we can all remember a time when even a mediocre stock mutual fund was returning over 10%.

Diagram with Increase arrow Upcoming Elections and coins at back
(c) 123rf.com

I am unsure if it really makes a difference whether Obama is reelected or Romney serves his first term in office.  I am looking at the numbers, not the politics.

My final answer, (and I am sticking to it) is Workers Comp is so heavily based on the economy of each state.  For instance, Senate Bill 863 out of California is unto itself on how the CA Workers Comp market will be affected in the next few years.

How about the new NCCI split points?  They will have much more of an effect than any election might have on rates.  North Carolina just came out with a laundry list of rule changes that will affect Workers Comp, but only in North Carolina.

I try to keep up with all of the changes nationwide in Workers Comp.  It can be dizzying at best.  I subscribe to and read over 20 newsletters a day along with various blogs on WC.  I wish I could write on every change in every state.  I am unable to come even close to that old goal.

©J&L Risk Management Inc Copyright Notice



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


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.