Posted on 20 Apr 2010
The softening of US workers' compensation rates has slowed down. Amazingly, for a line that has been heading down for six years, industry opinion is that rates could soon flatten.
The MarketScout barometer for composite property/casualty rates found that the rates for workers’ compensation decreased only 2% on average in March, compared with down 5% in February.
Richard Kerr, CEO of MarketScout, commented: “This is a significant month-on-month movement. If workers’ compensation premiums continue to moderate over the next several months, it will be a clear sign that comp insurers are beginning to increase premiums.”
It is a similar story on the reinsurance side. According to a Guy Carpenter briefing, the softening of treaty rates and terms for US workers' comp appeared to be slowing with overall program renewal rates coming in flat to slightly down.
What are you seeing in the marketplace?