Posted on 21 Oct 2009
Workers' compensation state funds have achieved a significant share of the overall insured workers' compensation market, with market share increasing in many of the states in which they write, according to a new study by Conning Research and Consulting.
“Workers Compensation State Funds now control a quarter of the insured workers compensation market, despite the fact that they only write in 25 states,” said Mark Jablonowski, analyst at Conning Research & Consulting. “In comparison to the industry as a whole, state funds’ loss ratios are higher, but they compensate with lower expenses and increased investment income. Overall, operating results are on par with the rest of the workers’ compensation industry.”
The Conning Research study, “Workers’ Compensation State Funds: Evolution of a Competitive Force” analyzes the role of state funds and their competitive positioning versus the traditional workers’ compensation marketplace and alternative forms of workers’ compensation risk financing. The study reviews state funds’ financial and marketshare results, their effect on the overall market, and the prospects for future growth.
“While state funds have strong financial results, there is more to the story of their successful growth,” said Stephan Christiansen, director of research at Conning. “Our research indicates that a key to the state fund success may well be their dedicated approach to loss prevention and control. Their mission often includes shared responsibility for health and safety with other state agencies, and so they often incorporate state-of-the-art loss prevention initiatives with financial rewards tied to the insured’s loss performance.”
“Workers’ Compensation State Funds: Evolution of a Competitive Force” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.
About Conning Research & Consulting
Conning Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. The Conning name has represented excellence in independent insurance industry research for 50 years. Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning is headquartered in Hartford, CT.