As the workers' compensation line continues to experience poor underwriting results and strong momentum toward rate increases, more companies are turning toward forming captives to combat rising costs, a Marsh executive says.
Speaking yesterday during a Webinar to discuss the Marsh Global Insurance Market Quarterly Briefing, Jonathan Zaffino, leader of Marsh's U.S. Casualty Practice, noted that workers' comp remains one of the few casualty lines still experiencing a significant pull on rates. This line, he notes, "has experienced another difficult year in 2011" with a combined ratio of 115, the worst seen since 2001, and the third straight year the line has led all commercial lines with the highest combined ratio.
Indemnity and medical costs continue to rise, he adds, and this, along with poor investment earnings, "leads to a relatively bleak picture" for workers' comp, says Zaffino.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.