Posted on 02 Jul 2009
The ongoing recession is taking a toll on the U.S. workers' compensation industry, but that bane is not without a boon as well. Job cuts, particularly in construction and manufacturing, are putting downward pressure on revenue from written premiums.
"It's certainly clear that the premium base will be declining," Harry Shuford, chief economist for the National Council on Compensation Insurance, said in last week's issue of "BestWeek" U.S./Canada. With fewer jobs, some companies are seeing upward pressure on rates. "We have the same exposure, but we lost 10-15% of premium," said Joe Treacy, assistant vice president, workers' compensation products and development for Hartford Insurance Group.