More employers turning to workers compensation residual markets

Carrier appetites and pricing levels they are willing to accept is tightening, which in turn is causing employers to look to residual markets for coverage.

An increasing number of U.S. employers seeking workers compensation insurance coverage are getting pushed into their states' markets of last resort as insurers walk away from riskier, less profitable accounts.

The size of employers forced to turn to the workers comp residual market also is growing, experts said.

Employers are turning to the residual markets as insurers raise their workers comp prices—particularly for less desirable accounts—in the face of insufficient investment income and rising medical and indemnity costs.

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