WORKERS’
COMP
WATCH
THE CARRIER PERSPECTIVE:
HOW AIG UTILIZES
MEDICAL EXPERTS; A
NEW PLAYER TAKES
ON HARD TO-INSURE
WC RISKS; AND THE
HARTFORD ON WHY
IT’S NOT JUST
ABOUT GETTING RATE
BY CHAD HEMENWAY
It’s no secret that Workers’ Compensa- tion is a challenging line of business, to say the least—carrying an annual industry combined ratio well into un- profitable territory (117.2 in 2011—
the highest in the last decade and the
highest among all major insurance lines).
As the overall insurance market hardens,
Workers’ Comp is among the lines consistently seeing the largest rate increases. But
for years, this line has been severely underpriced—and so the industry is far from digging itself out of that hole, despite the recent
rate hikes. Nevertheless, Workers’ Comp
premiums for private carriers and state funds
increased to $35.67 billion in 2011—a 13. 3
percent jump from 2010 and the first increase
since 2006, according to SNL Financial.
22 | MARCH2013 | PROPERTYCASUALTY360.COM
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