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Fitch sees more woes for workers’ comp
6/26/2012
 
The workers’ compensation line reported its worst result in 10 years in 2011 with a combined ratio of 117, according to a new report by Fitch Ratings.

More woes lie ahead. “Fitch estimates that it will be difficult for the workers’ compensation market to have a combined ratio of 110 percent or better in 2012 or 2013 without significantly more price improvement,” reports Insurance Journal.

The National Council on Compensation Insurance noted earlier in the year that, for the third straight year, workers’ compensation had the highest combined ratio of all the major commercial-insurance lines.

Similar results in South Carolina led NCCI to file for a 7.3% increase in advisory loss costs earlier this year. Combined ratios in South Carolina deteriorated from 100% in 2008 to 107% in 2009, and in 2010, the most recent year for which data is available, climbed to 124%.

Members of Palmetto Hospital Trust would be interested to know that the Trust’s combined ratio over the same period of time was steady at 84.3% in 2008, 85.3% in 2009, and 84.6% in 2010. Additionally, the Trust has not taken a rate increase since 2006.