After years of reductions, labor compensation in the event of renewals during the six-month period saw some flattening, with insurance companies competing to balance business operations with other more volatile lines, according to experts. wants to sign, says Jessica Cullen, New York-based chief executive officer for Arthur J. Gallagher & Co.
S&P Global's 2021 US real estate and accident insurance market report released in June stated that “the workers' line … has produced a fantastically low calendar year in a row. The 87% result for 2020 marked a fourth straight combined ratio below 90%. "
The flat renewal is not related to the COVID-19 pandemic and follows years of declines amid continued low interest rates," experts say.
flatlining was "inevitable without COVID" with several years of accumulating interest rates accumulating, says Mark Moitoso, Atlanta-based risk manager for Lockton Cos. LLC. "We are in a normal state of the market."
A year ago, some experts expected that the uncertainty surrounding COVID-1
"What strikes me is how wrong everyone was about what COVID would mean and the impact on the industry," said Jonathon Drummond, Chicago-based quotation manager, North America, at Willis Towers Watson PLC.
COVID-19 "did not go out to that doomsday" as "it was not a big event for the industry," Moitoso said.
As a result of the market stability of workers' skills, insurers are now more interested than ever in "exploiting and packaging with other lines", says Cullen. "Insurers ask, how can we potentially leverage a companion program with a tough property placement?"
This has led to increased competition for business, Drummond said.
“Customers change carrier due to volatility. in other industries "like" those customers are moving to a supported structure "within the claims program, he said.
Insurers are leaning toward the" highly desirable industry for workers to support a real estate program or umbrella program, "he said. commercial insurers that have been profitable, and therefore they are actively pursuing these new accounts. "
" There is a reason that there is still a lot of interest in the business, "said Moitoso." We are seeing more products packaged with workers' comp … "
Looking forward, regulatory change could create concerns for the company industry.
The future of infectious compensation for workers is one area to look at," says Cullen. "What's the next thing? (COVID-19 compensation) opened our eyes to more things. If I get the flu at work, can it change? We wonder what other rules changes that will affect.
The increase in work from home during the pandemic and limited control over ergonomic standards can also lead to more claims. "Now you have more people working from home and leaning," Cullen said. Catalog