As unfavorable pricing continues, competitive market could weigh on workers’ comp

As unfavorable pricing continues, competitive market could weigh on workers’ comp
workers comp header

According to Fitch Ratings, workers’ compensation saw a combined ratio of 92% for the previous year.

An immediate concern is the growing pressure from medical inflation, which had been somewhat tame in 2022. For the past year (ending Nov. 30, 2022), the medical consumer price index (CPI) was up over 4%, as compared to 1.7% during the same time frame in the previous year.

Workers’ compensation insurance is a critical component of employee safety. Recent years have seen workers comp claims frequency decline, thanks to an increased focus on risk management and safety in the workplace. However, Fitch Ratings, Inc. has warned that this trend could reverse due to unfavorable pricing trends, competition from other insurers, and other economic pressures.

Despite these risks, workers’ comp has remained a resilient insurance product. According to Fitch Ratings, the combined ratio for workers’ comp was 90% between 2017 and 2021. This suggests that the insurance industry is relatively healthy overall. However, Fitch Ratings has projected a modest change in this figure for 2022, estimating a combined ratio of 92% for the entire year.

The insurance industry’s direct loss ratio for workers’ comp has been strong in the first nine months of 2022. According to Fitch Ratings, this ratio stood at 47%, an 8.3% increase from previous years due to wage growth and payroll expansion. Additionally, flat or downward prices on workers’ comp insurance have made self-insuring less attractive, which could be a contributing factor in slowing policy count attrition. This is encouraging news for insurance providers and shows that there has been steady progress in the sector. With insurance companies continuing to innovate and expand their offerings, it looks like the insurance industry will remain a key player in the economy going forward.

However, the rating agency warned this premium growth is not likely to stand for a long time.

Fitch Ratings reports a 1% drop in workers comp renewal rates during the first three quarters of 2022 and are projecting this is going to happen for the first three quarters of 2023, driving prices to drop again.

But according to Fitch, the growing pressure from medical inflation is something everyone should be concerned about in 2023. This was not on our radar in 2022, now it is and we are here to assist. For the past 12 months (ending Nov. 30, 2022), the medical consumer price index (CPI) was up 4.2%. During the same time in 2021, the medical cost CPI was up 1.7%. We plan to provide the numbers for 2023, please follow us on social media for the latest updates.

Learn more about out workers compensation solutions and contact us today.

21
FEB
0

Uncategorized, Work Comp, Workers Compensation

, ,

Review before you renew!

Review before you renew!
Simple Work Comp policy reviews and renewals

70% of work comp policy reviews result in lower premiums for our clients.

Need help now?
Call us: 1-866-684-5684

The insurance industry is very competitive and despite what you may think, this competitiveness gives you an advantage that comes with options!

Running a business takes time, and I have yet to find a business client of ours who has too much time on their hands and has expressed joyously how excited they were to shop around for insurance. Especially workers’ comp insurance; and if the only option is getting comp coverage coverage from the state, then “forget about it”. You’ll have to jump though hoop after hoop for then minimum coverage just to stay in business.

On the other hand, I have heard satisfied clients of ours who were overjoyed to hear when we were able to lower their work comp premiums while also reducing their burdens of finding work’ comp insurance.

Work Comp Expiring?

If your work comp policy is expiring soon, then you owe it to yourself to get your policy reviewed before your renewal date. Loyalty is seldom rewarded in the insurance industry when it comes down to suffering claims and losses. It doesn’t matter how much you paid in the past, you will pay much more at renewal, and that’s if you’re not being dropped completely.

Know your Options

You should know what your renewal options are. Chances are your current insurance carrier won’t be supplying you with a competitive quote upon your renewal. It is what it is, and you’ll have to sign. Don’t get cornered with a last-minute renewal policy!

Simple Work Comp offers free work comp policy reviews as well as business insurance reviews for businesses of all sizes and every industry. (Request a review) Our insurance consultants are experts in insurance risk and the insurance risk marketplace.

We will review your coverage and find you an alternative quote against your current carrier.

About Insurance Carriers

All insurance carriers are not created equal. Different insurance carriers have different appetites. Which means, your business and your specific industry risk may not fit with what they are willing to insure; and if you do decide to go with their coverage (out of convenience), you may end up paying more.

We understand insurance carrier appetites and are on top of who’s insuring this risk vs that risks with a better rate.

Need help now?
Call and speak with an insurance consultant:
1-866-684-5684

Explore your Options and WIN

Simple Work Comp can help you explore your insurance options win without endlessly wasting your time & breath speaking and explaining your life’s business to everyone.

With one phone call, we’ll handle it all.

It’s time to take control of your work comp insurance costs.

Did you know?

You can have work comp coverage?

  • Without paying large down payments.
  • Without having to suffer end of year audits with extra fees.
  • Without long-term contracts.
  • Only pay for what you use.
  • With pay-as-you-go weekly payments.

About Simple Work Comp

Simple Work Comp is part of an independent group of companies that broker and specializes in workers compensation insurance and employee related costs since 1999.

Request a quote review now or call us: 1-866-684-5684

Simple Work Comp Policy Reviews an Renewals
Simple Work Comp offers free work comp policy reviews as well as business insurance reviews for businesses of all sizes and every industry.

 

 

Verification

Looking for Personal Insurance: SimpleInsuranceCo.com

7
FEB
0

Work Comp

, ,

Florida Workers’ Comp Rates to drop 7.5 percent

Florida Workers’ Comp Rates to drop 7.5 percent

Effective January 1, 2020, Florida Workers’ Comp Rates for new and renewal policies for other than the “F” classifications, the statewide overall rate level change shall be -7.5% for the filing.

Florida worker's comp rates to drop 7.5 percent.
Get A Rate Quote

1-866-684-5684

Contact us to have your Florida Workers’ Comp Rates verified.

Florida Workers Comp rate drop filing signed by David Altmaier, Commissioner Office of Insurance Regulation

OIR Orders Larger Workers’ Compensation Insurance Rate Decrease for 2020

Florida Insurance Commissioner David Altmaier issued an Order​ on Rate Filing on Thursday, October 24, 2018 to the National Council on Compensation Insurance (NCCI) requesting an amended filing to reduce workers’ compensation rates by 7.5 percent for 2020.

The Order notifies NCCI that the rate filing submitted for a 5.4% rate decrease has been disapproved and, if amended by November 4, 2019, will be approved with the larger workers’ compensation rate decrease.

Approval of a revised 7.5 rate decrease is contingent on the amended filing being submitted with changes as stipulated within the Order. If approved by the OIR, the revised rate decrease would become effective on January 1, 2020, for new and renewal business.

Source: Florida Office of Insurance Regulation

SimpleWorkComp helps business obtain affordable Florida Workers’ Compensation Rates.

Our team provides small business with the highest quality coverage at the most competitive rates in the industry.

Over the past 20 years, thousands of business owners have come to discover the best coverage, services, and rates that are only offered by SimpleWorkComp. With over 100 years of combined experience, our full service staff will analyze your business to find the most competitive provider for your specific situation. We are able to negotiate the absolute lowest rates even for difficult to place industries such as construction!

We are a leader in the workers’ compensation industry for two reasons, our service and experience! We provide everything the small business owner needs in one convenient location and treat each client like a VIP because to us you are! Beginning with the first phone call, you can expect complete satisfaction each and every step of the way.

Still not sure we can help?

Contact one of our expert staff completely free of charge at 1-866-684-5684! We are always here to help and happy to answer your questions about Workers’ Compensation Insurance.

​

29
OCT
0

Florida Workers Compensation, Florida Workers Compensation Rates, Work Comp, Workers Compensation

Fix diminishing agent commissions with Simple Work Comp

Fix diminishing agent commissions with Simple Work Comp
fix-diminishing-agent-commissions-with-simple-work-comp

Do your commissions diminish upon renewal? If so, how big a hit will you take when your comp clients renew? 10%? 20%? 50%?

As an agent you know all work comp carriers are not created equal. However, when it comes to agent commissions, some carriers are equally great at wanting you to believe that reduced commission percentages at renewal is the industry norm.

If this is happening to you or your agency, we can help.

Make diminishing commissions to your agency a thing of the past and fix them with our preferred alternative pay-as-you-go work comp markets.

We’ve been assisting agents, agencies, and brokers for over twenty years with commission percentages that never diminish upon renewal.

Please send us any upcoming renewals or accounts you’d like to improve, and our Simple Work Comp consultants will be happy to review them with our markets and get you a quick answer on coverage and commissions.

29
MAY
0

Agents, Referral Program, Work Comp, Workers Compensation, Workers Compensation Agents

Placing your work comp clients with the state fund, is it worth it?

Placing your work comp clients with the state fund, is it worth it?
Getting work comp coverage with the state fund

Do the commissions justify the paper work? How to get more reward from your hard-to-place work comp clients.

Sometimes we all need to know when to cut our losses and move on. However, that’s easier said than done. As a work comp insurance agent, you occasionally deal with people who own or operate companies, with employees, with losses (shock losses), and sometimes choose to perform risks that normal underwriters just won’t even return your calls or emails on.

So, what do you do? You’re stuck, right? Wrong! If you’re a savvy insurance agent, then you know there’s always a way via your state insurance fund. Now I’m going to wager if you know about the state insurance fund, then you know you can also refer to it as a ton of paperwork.

The state fund requires you to get the answers to a million and one questions and after all the questions are answered they then come back to you with a huge inflated premium amount that your client either has to pay or risk going out of business, by losing business due to lack of proper work comp coverage. This on some levels is almost as close as you can get to feeling what its like working a deal with the mob.

Now, if you’ve been persistent or lucky enough to reach the point where your client can afford to pay the over inflated premium and you still have all your hair. You can then look forward to receiving a nice commission from the aforementioned premium. After all, you did all the wok and got the deal done. Right, wrong again!

The agents placing their high-risk clients with the state are lucky to see three percent in commissions for all their hard work.

Let’s put that into perspective. At 3%, a $30k premium would only net you $900. And if you must split that with your agency then you can do that math.

Simple Work Comp is an alternative wholesale broker that provides professional work comp quote services to agents and brokers across the country.

We help agents keep their clients out of the state fund by trying to secure the best rates. On average our agents can save their clients as much as 40% off of premium and still could earn more in commissions than if they had placed their client with the overpriced state fund.

Request A Quote

Avoiding all the work and sparing their clients the proverbial hoops and hurdle jumping.

Simple Work Comp makes it easy for insurance agents to submit their risks and get answers on available work comp coverages for their clients.

If you’re an agent and have clients that are in the state fund or are unquotable for whatever reason, contact us for assistance.

Call 1-866-684-5684

Thousands of insurance agents have trusted us to help them secure standard and alternative pay-as-you-go workers’ compensation insurance solutions for over twenty years.

Overpriced state fund options with low low low commission percentages doesn’t have to be the norm and can be a thing of the past. Contact us today for a simple solution to your state fund woes.

22
MAY
0

Agents, State Fund, Uncategorized, Work Comp