Workers’ Compensation Premiums Flat for First Six Months of 2021
A comparison of workers’ compensation direct premium written indicated an overall decrease of approximately 0.3% for the first six months of 2021 compared to the first six months of 2020. Fifteen of the Top 25 carriers by dollar volume of workers’ comp business reported a period-to-period decrease in direct premium written. Overall, the Top 25 workers’ compensation writers reported a period-to-period decrease in direct premium written of nearly 2%. Conversely, the workers’ comp writers that ranked 26 to 50 outperformed the Top 25 and the aggregate, reporting a period-to-period increase to direct premium written of nearly 4.5%. The aggregate dollar decline of workers’ compensation premium volume from June 30, 2020 to June 30, 2021 was $74.6 million.
Future change in workers’ compensation premium volume is highly dependent on the changes in employment levels. In part, the continued impact of COVID-19 by state will affect workers’ comp premium. State by state unemployment results have been and remain dependent on the degree to which states can completely re-open.
Similarly, changes in behaviors will continue to shape the workers’ compensation insurance sector. These changes in behaviors can include safer work environments as a result of advancing technology as well as the increased use of telehealth. Also, changes in regulation and legislation remain a constant factor in future premiums reported.
Aggregately, the workers’ compensation sector remains financially stable. Factors beyond changing premium volume will contribute to this financial stability.