Workers’ Compensation Market Continues to Drop Rates

Feb 1, 2024

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.

The Jencap Workers' Compensation Insurance Team

The Jencap Workers' Compensation Insurance Team

Workers’ compensation is not a generalist’s game. Jencap’s dedicated division of industry-leading workers’ compensation experts understands every facet of this complex coverage line — from multi-state operations and high-hazard risks to United States Longshore and Harbor Workers Compensation Act (USL&H), and everything in between. No matter your clients’ industry, state, experience modification factor, premium size, or class code, the Jencap workers' compensation team has you covered.
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When it comes to workers’ comp, you don’t want a generalist broker who dabbles in a number of lines. You want someone who focuses on workers’ compensation policies, day in and day out. Our team of brokers has expertise in every corner of the workers’ compensation market and understands the legislative nuances across each state. We have the premium volume, carrier clout, and long-tenured relationships with the best workers’ compensation carriers in the industry. From monoline options to packaged solutions and everything in between, Jencap has an insurance solution that will address your clients’ needs.

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