Associate Vice President, HNI
Today’s economy reflects uncertainties, layoffs, restructuring, and over-worked employees. With this comes the influx of workers’ compensation claims with higher premiums than ever before.
1. Contributions to Workers Compensation net written premium have been in decline between 2007 – 2009. The 2 year change nationwide is broken down as follows:
a. Changes in bureau rates and loss cost = -7%
b. Changes in payrolls = -4%
c. Recession impact = -4 to -6%
d. Firm size change due to recession = -4 to -6%
e. Other impacts = +1% to -2%
f. TOTAL WC NET WRITTEN PREMIUM = -22%
2. Workers Compensation indemnity severity continues to outpace inflation.
3. Workers Compensation medical severity is growing faster than the medical consumer price index.
4. Workplace injury incidence rates are declining.
5. Overall claim frequency is down
6. High cost permanent total claims continue to rise
Workers Compensation For the state of Wisconsin:
1. 2010-2011 Wisconsin overall rate increase for WC across all industries is +3.35%. This is the result of :
a. Loss costs increasing by 2.35% and
b. Insuror expenses increasing by 1%.
2. Workers Compensation claims frequency has dropped 7%.
3. Workers Compensation claims severity are increasing at the following rates:
a. Medical +11%
b. Indemnity +4.5%
4. Workers' Compensation loss ratios are mixed as follows:
a. Medical +3.2%
b. Indemnity -2.8%
Download our free white paper on Strategies to Control Workers Compensation claims so you don’t face those costly claims.