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Member, Beacon International Group, Ltd.
Yet another report is showing that the workers compensation industry is seeing signs of a financial turnaround.
Oldwick, N.J.-based rating agency A.M. Best Co. Inc. released a report Monday saying that private workers comp insurers had a combined ratio of 98.6% in 2013, down from a combined ratio of 110.3% in 2012 and the third consecutive decline since 2010.
Best said that 2013 marked the lowest combined ratio for comp insurers since 2006. The rating agency attributed the improvements to "modestly better core underwriting performance," and said the results "may warrant some optimism for solid results ahead."
Best's report tracks a recent financial analysis from the National Council on Compensation Insurance Inc. The Boca Raton, Florida-based rating agency said it expects private workers comp insurers to have a combined ratio of 96% for 2014, down from 101% in 2013.
NCCI also said that this is the lowest projected combined ratio for workers comp insurers since 2006.
The next edition of Business Insurance will include analysis of both the Best and NCCI reports, as well as a discussion of what improved financial performance for insurers may mean for employers' workers comp policy pricing.