Workers’ Compensation Premiums Increase 10% for First Six Months of 2022

October 3, 2022 by

A comparison of workers’ compensation direct premium written indicated an overall increase of approximately 10.1% for the first six months of 2022 compared to the first six months of 2021. Twenty of the Top 25 carriers by dollar volume of workers’ compensation business reported a period-to-period increase in direct premium written. Overall, the Top 25 workers’ compensation writers reported a period-to-period increase in direct premium written of 13.7%. The workers’ compensation writers that ranked 26-50 reported a period-to-period increase to direct premium written of nearly 10.5%. The aggregate dollar increase of workers’ compensation premium volume from June 30, 2021 to June 30, 2022 was over $2.6 billion.

Future changes in workers’ compensation premium volume will be highly dependent on changes in employment levels. In part, the continued impact of COVID-19 by state will affect workers’ compensation 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.