In industry news:

A.M. Best released a new special report on the workers’ comp industry – “U.S. Workers’ Compensation Performance Improves Further Despite Additional Rate Softening.” Best notes that the industry bore witness to solid underwriting performance during 2014, marking the fourth consecutive year in which the industry reported improved results. However, analysts expect that over the longer term, the industry’s ability to maintain rate adequacy is uncertain. The industry reported a slight rate decrease of 0.4 percent during first-quarter 2015, as pricing for what are currently the most profitable accounts has become more competitive. Furthermore, loss reserve releases have declined and that trend is not likely to reverse in the near term. There remains some concern that improved underwriting performance driven by prior increased prices (without underlying improvement in losses and expenses) will reverse quickly if a broadly competitive market returns.

Read more via WorkCompWire here. Access the Special Report here.

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