Compensation For Workers – Debated

The U.S. w?rk?r?’ ??m??n??t??n insurance ??ct?r c?nt?nu?? to f??? an unc?rt??n future as ??mpet?tiv? ?r???ng, further r?t? decr????s, weak m??roecon?m?c f??tor?, ?nd gr?w?ng h?alth?ar? ???ts continu? wh?l? ?l?im frequ?ncy c?ntinu?d t? ris? in 2010 ?nd ?arl? 2011, ?c??rding t? A.M. Best.
Wh?l? th? l?n? is still d??l?ng w?th th? s?me is?ue? ?n 2011, A.M. Be?t s??d ther? is some r???on t? be h?p?ful as pr?m?um growth a?p?ars to be on a p???t?ve tr?ck in 2011 for th? f?rst tim? ?in?? 2005.

H?w?v?r, ?n c?ntrast to th? ????t?v? ?r?m?um gr?wth A.M. B??t s??d th?t ?ond?ti?n? ?ppe?r gr?m ?ver th? n??r t?rm, with exp??t?ti?ns th?t und?rwrit?ng r??ult? w?ll w?ak?n further before the? g?t b?tt?r. At the ??me t?m?, howev?r, resear?h by ? p??r ?f res?ar?h?rs at th? Univers?t? of cal?f?rnia at D?v?? ?ugge?t ?th?rwi??.
Let’s l??k ?t the A.M. Best re?ort first ?n th? current ?t?te ?f w?rk?r?’ ??mp?n??tion. Oth?r k?? f?ndings ?n this re?ort:

• Re?ult? f?r th? w?rk?rs’ ??m? lin? ?f bu??ne?s d?t?r??r?t?d sh?r?ly ?n 2010, w?th the ??lendar-??ar ??mb?n?d rati? ?n?r?a??ng nearl? ??ven ?oints to 118.1, th? high?st l?v?l ?in?? 2000.

• N?t pr?mium? written (NPW) f?r th? l?n? fell f?r the f?fth c?n?ecutiv? ??ar ?n 2010. Pr?mium volum? has decl?ned more th?n 30 perc?nt ?inc? NPW re??hed ?t? high ?n 2005. Wh?l? NPW d?cl?n?d f?r m??t ?nsur?r?, ? numb?r of ?omp?n?es ??w ?n increa?e in 2010.

• The to? fiv? workers’ ?om? in?ur?r? ranked by NPW ?n 2010 r?m?in?d unch?nged, w?th Libert? Mutual insurance Cos., Am?r?c?n Int?rn?t??nal Group (AIG), Tr?veler? Gr?up, H?rtf?rd insurance Gr?u? ?nd the St?t? insurance Fund ?f N?w Y?rk st?ll l?ad?ng.

• Through Se?t. 15, 2011, neg?t?v? r?t?ng ??ti?ns out???ed ?o?it?v? r?t?ng ?ct?ons in th? w?rk?rs’ c?m? s?gm?nt by m?re than ? 2-t?-1 m?rg?n. In ?ddit?on, th?r? w?r? ??ght rat?ng un?ts aff?rm?d w?th n?g?tiv? outlo?k? during th?s t?m?, and A.M. ?xpe?t? th?s trend to ??ntinue f?r the r?maind?r ?f 2011.

N?w Study Contr?d??t? A.M. B??t
Sk?r?ck?ting worker?’ ?omp?n?ati?n ?l?ims p??m?nt? are ?ft?n bl?med for r???ng premium?, but ? UC Davi? stud?, ??c?rding t? He?lthC?nal, ha? f?und th?t the number ?f ?l?ims h?s dro??ed dur?ng the ???t tw? d?c?d?s. Published ?n th? S??t?mb?r-Oct?b?r ???u? ?f Publ?c Health R?p?rt?, th? ?tudy sh?ws that h?gh?r prem?um? are ?nstead a?soc??t?d w?th de?rea?e? in th? Dow J?ne? Indu?tr?al Aver?ge and ?ntere?t rat?? on U.S. Treasur? b?nd?.
‘insurance ??m?an?e? ?p?ear t? h?v? been ??tt?ng pr?mium? ?cc?rding t? th??r r?turns on the sto?k ?nd bond m?rk?t?, not accord?ng t? th? numb?r of cl??ms th?y h?v?,’ sa?d J. P?ul L?igh, UC Davis prof????r ?f ?ubl?? h?alth ??i?n??s and ?en??r author of the ?tud?. ‘They inv?st b??aus? the? n?ed ? f?n?n??al cush??n to pay for ?l?ims and, ?f they l???, r???? prem?um? t? re?ou? the?r l?s?e?, L?igh a?s?rts.
Th? r??e?rchers found th?t whil? pr?mium? ?ncre?s?d from 1992-2007, cla?m? de?re?sed 1 t? 2 p?rcent ???h y??r. Cl??m? f?r s?ri?u? ?lln??s?? and injur??? v?ried, but d?creased ?v?rall.

Th? t??m al?o d?s??v?red th?t f?r th? ?ntire 35-year t?mefr?m? ?f the study, r??ing pr?mium r?t?? w?re cl???l? linked w?th th? Dow J?n?? Industrial Av?r?ge ?r Tr??sur? b?nd?. As e?ther th? Dow or ?nt?r??t rat?? ?n Tr??sur? bond? f?ll, ?r?m?ums r???, ?nd v??? ver?a.
Work?r’? ?omp?nsati?n Ba?kgr?und
Ev?ry ?t?t? ?xc??t Tex?s r?qu?r?? emplo??rs to ?r?v?d? w?rker?’ comp?n?at??n c?v?r?ge. In T?xa?, em?loyer? ?an ?ho??? n?t t? ??ver the?r ?m?l?y?e?, but ?f th?y mak? th?t cho?ce they are n?t ?rot??t?d from t?rt su?ts f?l?d by ?n?ur?d emplo????.

S?me ?t?t?? ex?mpt from m?ndat?ry ??v?r?g? ??rt?in ??t?g?ri?? of workers, su?h ?s th??? in very ?m?ll firm?, c?rt??n agr??ultural w?rk?r?, hous?h?ld w?rk?r?, emplo?e?s of ch?r?table or r?ligiou? ?rganiz?ti?n?, or ?mpl??ees ?f s?m? un?t? ?f ?tate and l?c?l g?v?rnm?nt. Em?l???rs with few?r than three w?rk?r? ?re ex?mpt from m?nd?t?ry work?r?’ ??m?en?at??n ?over?ge ?n Arkans??, C?l?r?d?, Ge?rgi?, M??h?gan, N?w M?x?c?, N?rth C?rolin?, Virgin??, ?nd W?s??nsin. Em?loy?r? w?th fewer than four w?rker? ar? ex?mpt ?n Fl?r?d? ?nd S?uth C?rol?na. Th?se w?th f?w?r than f?ve ?m?l???e? ?r? ?x?mpt ?n Al?b?ma, M??????ip?i, Mi?sour?, and Tenn?????.