The workers’ compensation insurance market has remained relatively soft over the past few years, characterized by high capacity and rate decreases, as carriers seek to come out on top in a competitive environment. A number states are seeing drastic rate cuts this year:
- A 15.1% rate cut goes into effect this month in Florida
- Arizona approved a 10.3% rate reduction for this year.
- Connecticut’s approved WC rate reduction of 9.8% went into effect on January 1.
- Louisiana approved a 9% drop in rates, which will go into effect in May 2024
- New Jersey and Ohio are both seeing a 3.9% rate reduction this year.
WC Market Expected to Remain Soft — For Now
Surprisingly, alongside all these rate reductions, the WC market has weathered medical inflation, increases in regulation, expanding coverages, healthcare provider shortages, and more. And yet, profits have held strong. The workers’ compensation market has enjoyed eight consecutive years of profits, making it one of the most profitable lines of business insurance for the past five years.
Will the soft market persist? Likely, yes — at least in the near term. According to Jeff Sandy, Jencap Vice President of Workers’ Compensation, “In 2024, we can expect to see rate reductions continue across the workers’ compensation line. There must have been a lot of proverbial ‘fat’ in the workers’ compensation line to take these reductions and not be negatively impacted.”
Jencap, Your Go-To Wholesaler Amidst Any Market Condition
Only time will tell how long this rate reduction trend will continue before we see a correction. As a retail insurance agent, it’s critical that you place your clients with carriers who will remain stable and reliable partners for the long haul.
As a leading workers’ compensation wholesaler, Jencap’s dedicated workers’ compensation insurance brokers have the product expertise, geographic reach, and trusted reputation to navigate any market condition. We specialize in workers’ compensation insurance with market access to more than 70 monoline workers’ compensation carriers. No matter your clients’ risk profiles, we can work alongside you to find a carrier that best meets their needs — both now and in the future. Contact one of our brokers today for a quote.
