Standard & Poor’s the rating Agency that got so much so wrong during the financial meltdown may have gotten this one right, unfortunately. In their report just issued entitled “For The US Prop/Casualty Industry, Making Workers Compensation Profitable May Be Mission Impossible”; they essentially delineate all of the reasons why insurance carriers who underwrite and issue workers compensation are losing money hand over fist. Worse, their are no quick fixes on the horizon.
The biggest issue for carriers is they can’t raise rates fast enough to off set medical inflation as the states who help set such rates are pushing back. In their report Standard & Poors continued to blame high unemployment, a sluggish economy, medical inflation, low returns on investments as the main the culprits.
The good news for businesses that are “Best Practice” firms there is opportunity to create meaningful separation between you and your competition. In an article we recently wrote on our construction blog insurance mic. We offered up 8 TIPS TO DRIVE OPPORTUNITY IN A HARD INSURANCE MARKET.
We always maintained in difficulty lies great opportunity. In a future post I will map out a similar strategy to help reduce cost in a raising workers compensation premium environment.I know reading insurance articles can be riveting however there is money in them there hills!
