Warning, Will Robinson, Warning!

By | April 19, 2012

Guess what happens when insurance companies lose money?

You got it, PREMIUMS GO UP!!!

  • It is hard to believe workers’ compensation insurance carriers are going into their 4th consecutive unprofitable year.
  • The average insurer is spending $1.22 for every dollar of premium received.
  • Get ready for premium increases in workers’ compensation on your next renewal. (CLICK HERE to see how your company did)

Why is this happening!? Can you believe insurance carriers have seen premiums drop by as much as 45% over the last three years?  When workers’ comp invests their reserves conservatively, this means they are getting an average of 2 to 3% return. You can imagine no company will survive long losing 22%.

 

What does this mean for your company? It means a 10 to 15% increase in your premiums for the coming year. Bend over…  Combine this with the changes that are coming to how the NCCI calculates your experience modification factor.  Many companies could be looking at premiums going up again even higher in 2013. (We will talk about this near death experience next week.)

 

 

What can you do?  First, make friends with someone who specializes in workers’ compensation.  (me! Wink, wink) Someone who can explain how the new NCCI formula will affect your company and empower you in the management of your claims.  You don’t have to be a psychic to get an accurate projection of what your experience modification factor will look like for 2013.

Don’t get lost in space and time. Call me, I can help you through this time of turmoil.

 

 

Sincerely,

Bob “Red” Hollingsworth PWCA, CRM, CIC 801-631-5202

Professional Workers Compensation Manager / Risk Manager

 

 

 


Leave Your Comment