The workers’ compensation market is likely to experience its eighth year of profitability, but there are still issues that could affect the future of companies, according to a report released Tuesday by Chicago-based Risk Placement Services Inc.
Among the highlights, insurers will continue to see rate cuts through the remainder of 2022, anticipating a slowdown of the already 40% to 60% total rate cuts seen in most jurisdictions over the past decade, and competition will be an issue as insurers and corporate executives. general agents continue to expand into more states.
The report cited work-from-home arrangements, high-risk industries’ mega-claims and worker shortages as areas that could affect the industry.
Telecommuting or hybrid work from home has made work a 24-hour exposure for employers and may have implications for the come-and-go rule in comp and what constitutes a workplace injury, according to the report.
Mega claims are also a problem, as those who work in high-risk industries such as construction, logging and mining and are disproportionately injured have the highest dollar claims, often over $3 million and mostly due to medical costs, according to the report.
And companies eager to get the workforce back on the job have “rushed”; their training programs — “an accident waiting to happen,” according to the report.