Comp premiums decreased by 13%: A.M. Best

Direct depreciation of workers' benefits during the first three quarters of 2020 decreases by 13% during the same period in 2019, according to A.M. Best Co .:'s market segment for real estate / accident was released on Wednesday.

According to Oldwick, the New Jersey-based credit rating agency, domicile orders and government-imposed corporate closures have worsened premium levels, with an even more pronounced impact on employee compensation due to declining shares and declining wages.

The workers 'compensation segment directly reported a premium of $ 37.9 billion in the first nine months of 2020, a decrease from $ 43.4 billion in the first nine months of 2020. However, the ratio of direct losses to workers' compensation was almost stable. of 49.1

in the first nine months of 2020, compared to 49.4 for the same period 2020, probably due to a favorable loss rate from the lower risk profile due to teleworking and furloughs and layoffs under higher risk industries, according to the report.

AM Best noted that the fall in premiums from higher unemployment and the contradictory laws on presumption make it easier for workers to obtain compensation for COVID-19 that has passed in some states are new risks for industry.

More insurance and workers compensation news about the coronavirus crisis here .

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