In continuing news:

NCCI issued the Brexit update to its recent Quarterly Economics Report. The update notes that the fallout for the overall US economy from the UK’s vote to leave the EU should be minor, reducing the growth rate of the US gross domestic product by just 0.1 percentage points over the next year. As for the the effect of Brexit on US workers’ comp, NCCI explains:  “Lower exports, due either to reduced trade with the UK or to appreciation of the dollar exchange rate with other trading partners, can negatively impact payroll in affected industries. Constrained investment returns, particularly at longer bond maturities, can reduce investment income and may incentivize insurers to shift their portfolios into riskier or less liquid asset categories in search of higher yields. As an offset, a continuation of low interest rates would be positive for mortgage financing in the construction sector, which is already recovering in most regions of the US.”

Download the Brexit page here: NCCI Quarterly Economics Briefing Special Report_Brexit

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