10 Years of Workers Comp Pricing Shines Compared to Other P&C Lines
A Workers Comp pricing chart shows how successful Workers Comp has become over the other Property and Casualty lines
I was reading through one of my recommended publications – Business Insurance – last week when I came across an astounding chart in an article by Gavin Souter. You can find the article here. You will have to download the whole PDF. Page 14 contains the article. Scan the other 43 pages for good insurance info – worth your time. The article goes on to interview different Risk Managers and experts on how they are adjusting to the new pricing models.
The chart below from the article made me stop and notice the difference between the P&C lines. Workers Comp pricing looks to have performed well. The below chart from the article Yes, the decreases in pricing were modest.
Compared to the other P&C lines, this should be a success story for workers comp pricing and in general over the last decade. One only has to see in the chart how the Property Lines pricing has spiked over time along with umbrella coverages.
Bottom Line
At the 2022 NCCI Annual Insights Symposium, Dr. Bob Hartwig said that workers compensation is healthy and paying claims timely.
Many of our clients have expressed concern over the recent sharp increases in insurance pricing. At least WC pricing has remained stable over the last decade. One only has to look at the 1990s to see the last time a true workers comp crisis was unfolding even with the number of claims reducing during the same period.
What does this look at workers comp pricing mean for the future? Workers Comp price increases are likely coming due to increased claim values. I will write another article on the upcoming price increases soon.
