Will master Cyber policies be the next EPLI product for PEOs?

With two carriers now offering master PEO cyber programs, the question here is PEO’s be able to sell these as part of their overall package?

A recent 2017 RIMS survey has shown that 83 percent of organizations have a standalone cyber insurance policy (up 3 percent from 2016) and only 14 percent are utilizing the cyber coverage offered in their other insurance policies.

One reason for this statistic could be that Risk Managers want specific endorsements and add-on coverages that apply directly to their industry or are a result of a problem they’ve faced in the past.  This has been a crucial part of individual cyber policies over the past few years as the carriers try to keep up with the quickly evolving cyber space.

With the above in mind, it may be difficult for PEO’s to make this as part of their basic package as EPLI has become over the past decade.

I would like to note the PEO cyber program has one crucial endorsement, Social Engineering, that can be added on for an individual client company.  This has to be individually underwritten for each client company adding another layer for the PEO sales rep to cross-sell.

If you work in the PEO industry, please comment below with your thoughts of PEO’s offering cyber coverage to client companies. For more statistics from the RIMS survey please visit: http://www.insurancejournal.com/news/national/2017/08/25/462357.htm

 

-David Campbell

Risk Consultant at Libertate Insurance

Does your EPLI policy cover against employee harassment to a Third Party?

Most employers understand their Employment Practices Liability Insurance policy to cover against employee to employee or employer to employee harassment and discrimination.  But many of these employers could be liable for claims that they do not have coverage for under their current EPLI policy without the proper endorsements.  The most reoccurring of these claims have been third party claims against the behavior of your employee to the third party.  The language in a Lexington policy of an event resulting in a claim is: “allegation(s) of intentional or unintentional Discrimination, Harassment or any civil rights violations committed by an Insured and brought by a Third Party, whether such event against the Third Party occurs directly or through the Virtual Environment.”.  Their terminology for this coverage is Wrongful Business Environment.

So, we have coverage for your employee harassing or discriminating against a third party.  But what happens when the scenario is flipped and a third party discriminates or harasses your employee?  The employee would go to the employer or manager, and one of two things will happen: The employer will address the issue or the employer will ignore the issue.  In the first scenario, the employer and employee can work together on behalf of the employee to file a claim against third party’s employer.  Let’s hope they have third party coverage on their EPLI policy.  In the second scenario, where an employer fails to do anything, the employee can file a claim against the employer.  This would actually be looked at as a “hostile work environment claim” (your typical EPLI claim) and would be covered.  In this scenario, as well, the employee would also be able to go after the third party’s employer as well.

 

For more examples and details on this coverage, please visit: : http://www.propertycasualty360.com/2006/11/01/third-party-coverage-can-be-an-important-part-of-epli-policies

“Suppose a document messenger makes daily stops at a real-estate agency, where he greets the receptionist. After a number of visits, the messenger begins making suggestive sexual remarks. The receptionist complains to the owner of the business, who does nothing other than advise the receptionist to just tell the messenger to stop bothering her.

One day the messenger appears and makes suggestive remarks to the receptionist and even touches her inappropriately. Visibly shaken, the receptionist complains again to her boss, who takes no action. Not being able to endure the continuing harassment, the receptionist quits and sues her boss for emotional distress and failing to prevent an assault.

This is a clear example of an employer tolerating a hostile work environment, a typical EPL claim. The mere inaction of the employer makes him responsible. This also could be pursued as a third-party claim against the messenger’s employer.”

 

If you have any questions regarding your EPLI policy or would like a free audit of your current policy and coverage, feel free to reach out to David Campbell at dcampbell@libertateins.com or 407-613-5483.

The 72’nd Annual Workers’ Compensation Educational Conference – Orlando

Another year and another convergence of the who’s who in the field of workers’ compensation at the Marriott World Center in Orlando this week.  Known as the largest insurance conference in the country, the Workers’ Compensation Institute brings together “centers of influence” in law, medicine, claims adjusting, underwriting, brokerage, risk-bearing, managed care, regulation, legislation, staffing and of course coemployment.

Dating back over a decade, the Workers’ Compensation Institute and specifically Jim McConnaughhay and Steve Rissman have granted the PEO community a one day educational track.  Shortly thereafter, FAPEO and NAPEO threw their influence and sponsorship behind it.  Special thanks to the WCI, FAPEO and NAPEO for making this a success and bringing positive exposure to the PEO industry.

I am proud to participate on a panel Tuesday morning at 9:00 am with Andy Olwert (Next Level), Deb Hetzer (PEMCO), Phil Herron (Continuum HR) and Robert Barrett (Rissman, Barrett, Hurt, Donahue, McLain & Manganese’s, PA) titled “Accountability in the PEO Industry – Posting Wins for PEO’s and Their Claims Teams”.  More information on this data-driven session can be found on the WCI 360 site here:

http://www.wci360.com/conference/professional-employer-organization-breakout

Hope to see you Thursday morning and look forward to catching up with lots of old friends!

Internal Revenue Service Posts List of PEO Small Business Efficiency Act Participants

Unfortunately for the PEO industry, there have been cases in the past of payroll tax money not making its proper way to the Internal Revenue Service from a PEO, leaving small employers being forced to repay SUTA and FUTA.  A solution to allow PEO’s to be accredited/certified/recognized by the IRS was sought by NAPEO to help the credibility of the industry and ensure proper payments of tax for American business.

As background and straight off the NAPEO website…

www.napeo.org

On December 19, 2014, President Obama signed the Tax Increase Prevention Act of 2014. Included in this legislation was the Small Business Efficiency Act (SBEA), which created a voluntary IRS certification program for professional employer organizations. It was previously approved by the House of Representatives as a provision in the ABLE Act to off-set the costs associated with that proposal, then incorporated into the Tax Increase Prevention Act of 2014 and passed by the Senate.

IRS PEO certification is important because it:

  • Confirms the certified PEO (CPEO) can pay federal employment taxes under its EIN.
  • Protects customers through the CPEO’s sole liability on wages paid to WSEs by CPEO.
  • Provides certainty with respect to when a wage base restart is not necessary for new customers.
  • Confirms the CPEO’s FUTA credit for all SUTA paid by CPEO or customer.
  • Offers clear guidance for the CPEO and the customer on pass-through of tax credits and employment tax exclusions.
  • Gives increased comfort for potential client with use of an IRS-certified PEO.
  • Lends credibility to PEO business model, especially with investor community and federal regulators.

—–

This is a huge win for the industry in its quest for more market share against the traditional deployment of employment related functions and I believe will become a huge competitive advantage for the current and future participants of this PEO certification.

The initial list is below…Kudos to NAPEO and the 30 or so PEO control groups to take the lead on this initiative.  For those looking to certify, Thom Stohler and Farrah Fielder at NAPEO are standing by to help —  PRH

List of CPEOs

Applicant Name

Street Name

Addr Line 2

City

State

Postal/Zip

Country

Effecctive Date

ACCESS HUMAN RESOURCES LLC

28800 Orchard Lake Road

2nd Floor

FARMINGTON

Michigan

48334

United States

1/1/2017

ACCESS MANAGEMENT LLC

28800 Orchard Lake Road

2nd Floor

FARMINGTON

Michigan

48334

United States

1/1/2017

ACCESS RESOURCE SOLUTIONS LLC

28800 Orchard Lake Road

2nd Flr

FARMINGTON

Michigan

48334

United States

1/1/2017

ADP TOTALSOURCE CO XXI INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE CO XXII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE DE IV INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XI INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XIX INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XVI INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XVII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XVIII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XXIX INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE I INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE II INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE III INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE INC

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE MI VI LLC

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE MI VII LLC

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE MI XXX INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE NH XXVIII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE OF CO XXIII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ALCOTT HR GROUP LLC

71 Executive Blvd

FARMINGDALE

New York

11735-4709

United States

1/1/2017

AVALON HR 2 LLC

100 S Pace Blvd

PENSACOLA

Florida

32502

United States

1/1/2017

AVALON HR 3 LLC

100 S Pace Blvd

PENSACOLA

Florida

32502

United States

1/1/2017

AVALON HR LLC

9685 Soldier Creek Rd

LILLIAN

Alabama

36549

United States

1/1/2017

AVITUS INC.

175 N. 27th Street

Suite 800

BILLINGS

Montana

59101

United States

1/1/2017

AVITUS TWO LLC

175 N. 27th Street

Suite 800

BILLINGS

Montana

59101

United States

1/1/2017

AXCET HR SOLUTIONS

8325 Lenexa Drive

Suite 410

LENEXA

Kansas

66214

United States

1/1/2017

ENGAGE PEO LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

EXTENSIS II INC.

900 Route 9 North

Third Floor

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS III INC.

900 Route 9 North

Third Floor

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS INC.

900 Route 9 North

Third Floor

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS IV INC.

900 Route 9 North

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS VI LLC

900 Route 9 North

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS VIII INC.

900 Route 9 North

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

G&A OUTSOURCING VII LLC

17220 Katy Freeway Suite 350

HOUSTON

Texas

77094

United States

1/1/2017

GENESIS HR SOLUTIONS INC.

One Burlington Woods

Suite 203

BURLINGTON

Massachusetts

01803

United States

1/1/2017

HELM HR LLC

201 South Court Street

Suite 700

FLORENCE

Alabama

35630

United States

1/1/2017

INSPERITY PEO SERVICES L.P.

19001 Crescent Springs Drive

KINGWOOD

Texas

77339

United States

1/1/2017

INTANDEM HUMAN RESOURCES LLC

650 S Cherry St.

Suite 1221

DENVER

Colorado

80246

United States

1/1/2017

JUSTWORKS EMPLOYMENT GROUP LLC

151 West 26th Street

12th Floor

NEW YORK

New York

10001

United States

1/1/2017

LBMC EMPLOYMENT PARTNERS LLC

201 Franklin Road

Suite 200

BRENTW OOD

Tennessee

37027

United States

1/1/2017

MBA PAYROLL SERVICES II INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MBA PAYROLL SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MIDWEST VENTURES LLC

1200 Internationale Pkwy

Suite 200

WOODRIDGE

Illinois

60517

United States

1/1/2017

MIDWESTHR LLC

1200 Internationale Pkwy

Suite 200

WOODRIDGE

Illinois

60517

United States

1/1/2017

MINUTE MEN SELECT INC.

3740 CARNEGIE AVENUE

CLEVELAND

Ohio

44115

United States

1/1/2017

MODERN BUSINESS ASSOCIATES V INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MODERN PAYROLL SERVICES II INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MODERN PAYROLL SERVICES III INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MODERN PAYROLL SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS IV INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS V INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS VI INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS VII INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

OASIS HR SOLUTIONS III INC.

2054 Vista Parkway Suite 300

WEST PALM BEACH

Florida

33411

United States

1/1/2017

PAYCHEX PEO VI LLC

970 Lake Carillon Drive

Suite 400

ST. PETERSBURG

Florida

33716

United States

1/1/2017

PAYCHEX PEO VII LLC

970 Lake Carillon Drive

Suite 400

ST. PETERSBURG

Florida

33716

United States

1/1/2017

PROFESSIONAL EMPLOYER SERVICES II INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

PROFESSIONAL EMPLOYER SERVICES INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

PROGRESSIVE EMPLOYER MANAGEMENT COMPANY IV LLC

6407 Parkland Drive

SARASOTA

Florida

34243

United States

1/1/2017

PROPEL PEO INC.

669 N. Academy Street

GREENVILLE

South Carolina

29601

United States

1/1/2017

PROPEL PEO OF TEXAS INC.

669 N. Academy St.

GREENVILLE

South Carolina

29601

United States

1/1/2017

RESOURCING EDGE I LLC

1309 Ridge Road

Suite 200

ROCKW ALL

Texas

75087

United States

1/1/2017

S2 HR SOLUTIONS 1A LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 1B LLC

3001 Executive Drive

Suite 340

CLEAWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 1C LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 1D LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 2D LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS GROUP 1 LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

STAFF MANAGEMENT INC.

5919 Spring Creek Road

ROCKFORD

Illinois

61114

United States

1/1/2017

STS ADMINISTRATIVE SERVICES OF FLORIDA INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

STS NATIONAL ADMINISTRATIVE SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

STS NATIONAL MANAGEMENT SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

STS REGIONAL ADMINISTRATIVE SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

SWBC PROFESSIONAL EMPLOYER SERVICES I LLC

30815 US Hwy 281 N

BULVERDE

Texas

78163

United States

1/1/2017

SWBC PROFESSIONAL EMPLOYER SERVICES II LLC

30815 US Hwy 281 N

BULVERDE

Texas

78163

United States

1/1/2017

SWBC PROFESSIONAL EMPLOYER SERVICES III LLC

30815 US Hwy 281 N

BULVERDE

Texas

78163

United States

1/1/2017

SYNDEO OUTSOURCING LLC

3504 N Great Plains Dr Ste 200

WICHITA

Kansas

67230

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES II INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES III INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES IV INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES V INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES VII

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES VIII INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

Last Updated 07/14/2017

Insurance Nerd Day 2017!

…was yesterday and we did not celebrate it here on the Compass where we take that title as a compliment!

July 18 is Insurance Nerd Day

25% of insurance professionals will reach retirement age by 2018 and only 5% of college graduates are very interested in pursuing a career in the insurance industry.  That will create huge opportunity for newly-minted insurance nerds of all ages in the near future.  Data management and predictive modeling are going to make this industry far sexier in the years to come…

 

FBI: Cybercrime Losses Reached $1.33B in 2016, a 24 Percent Rise

Unfortunately, cybercrime isn’t going anywhere anytime soon.  Below is a brief update from the FBI on the topic.

FBI: Cybercrime Losses Reached $1.33B in 2016, a 24 Percent Rise

June 22, 2017 by Laharee Chatterjee

Losses from cyber crimes rose 24 percent in 2016 to over $1.33 billion, according to a report by the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3).

The center, which was set up in 2000 to receive complaints of internet crime, received 300,000 complaints during the year from hacking victims.

Businesses lost $360 million to cyber criminals, who tricked them into wiring money using fraudulent emails that appeared to be from corporate executives and suppliers, according to the report released on Wednesday.

IC3 said it received 2,673 complaints last year from victims of ransomware, with losses totaling over $2.4 million.

In May, the WannaCry ransomware attack infected 300,000 computers in more than 150 countries, disrupting factories, hospitals, shops and schools.

Ransomware is a form of malware that encrypts data on infected machines, then typically asks users to pay ransoms in hard-to-trace digital currencies to get an electronic key so they can retrieve their data.

 

Cyber Insurance is quite possibly one of the most discussed and equally misunderstood concepts over the past several years.  If you own a business, you must ensure you are protected from cybercrime. Libertate Insurance has access to several markets one of which is a new PEO Cyber Master program.  Contact us today for more information.

Sharlie Reynolds, 305.495.5173 / sreynolds@libertateins.com

California Adopts 16.5% Workers’ Compensation Rate Drop for 7.1

From the Insurance Journal…

http://www.insurancejournal.com/news/west/2017/05/22/451841.htm

California chose to adopt the Workers’ Compensation Insurance Rating Bureau’s (“WCIRB”) recommendation of a -16.5% drop in pure premium rates.  It should be noted that these rates are advisory only and so what to watch next is who adopts the pricing decrease and who does not.  With over 30% of all US workers’ compensation premiums generated out of California, this will provide an intriguing battleground and opportunity for those carriers that buy into WCIRB’s numbers in regard to lower medical loss development, decreasing indemnity claim frequency, and lower than projected loss adjustment expenses.

– Paul R. Hughes

 

2016 Workers’ Compensation Combined Ratio is a 94 per NCCI

It has been a busy month of conventions… NAPEO Legal and Legislative, RIMS and last week the NCCI.  On the ground at the PACE conference in New Orleans, a look back at the NCCI AIS.

The National Council of Compensation Insurance (“NCCI”) Annual Issues Symposium is the preeminent conference for understanding all things workers’ compensation.  Industry experts in the carrier, reinsurance and brokerage communities converge in Orlando every year in May to better understand the meaningful trends in the workers’ compensation line of insurance. The most meaningful number of this year’s event was 94… the lowest combined ratio of any other year since 1990 with the exception of 2006 (93).  It should also be noted that this is a 6 point drop from the 100 of last year and represents one of few years <100.

Based on typical patterns, this is now where capital enters the market… which was illuminated when the NCCI literally sold out of tickets.

With NAPEO’s Legal and Legislative Conference two weeks ago, the NCCI conference last week and PACE in New Orleans this week… it has been a high school reunion of sort – seeing good friends, telling old stories and commiserating on how to make the PEO industry the optimal platform for American business.  Health insurance maybe in the news every day but workers’ compensation is the line of business that PEO’s must have.

The origination of the PEO Compass was to provide an executive summary of all things workers’ compensation and how they impact all things PEO.  The NCCI is a huge driver of this nationwide and sets rates and rules in 37 states.  The document attached is a must read for those like me that are workers’ compensation and data geeks.

https://www.ncci.com/Articles/Documents/II_AIS2017-SOL-Guide.pdf

For those that are not (or would prefer not going through 57 slides), the highlights below:

  • The total P/C industry’s 2016 combined ratio (101%) represents a three-point increase versus that for 2015.
  • Combined ratios increased in all lines of business except workers compensation (slide 4)
  • Premium for the NCCI-serviced Residual Market Pools has remained stable over the last four policy years, at approximately $1.1 billion. (slide 12)
  • Between 2015 and 2016, countrywide private carrier direct written premium grew +2.4% (slide 15)
  • The percentage change in payroll (+4.5%) is approximately equal to the percentage change in the average wage (+2.5%) plus the percentage change in employment (+1.9%).  Employment grew at an above-average rate for the Professional and Business Services; Education and Health Services; Construction; and Leisure and Hospitality sectors.  Employment in the Manufacturing sector was flat, while the All Other sector posted a decrease primarily due to declines in Natural Resources and Mining employment (slide 17)
  • NCCI workers’ compensation filings with effective dates in 2017 averaged –6.7%… California and New York are already seeking approval for rate decreases which are not even part of this data set (slide 18)
  • In 2013, more than 70% of respondents saw an increase in premium at renewal, but by the fourth quarter of 2016, 62% reported seeing a decrease in premium at renewal (slide 23)
  • The workers compensation 2016 calendar year combined ratio for private carriers was 94%. This is the second consecutive year that the industry has posted a six-point underwriting gain. Consecutive combined ratios at this level have not been seen in at least the last 30 years (slide 24)

What this means is that workers’ compensation has become a very sexy line of insurance risk-bearers.  With favorable improvements in operating and investment performance, the median expected rate of return is +20%.  Again, it is therefore no surprise that this years NCCI AIS conference was sold out months prior to the event.

For those that happen to be in New Orleans this week for the annual PACE conference, let’s meet up and strategize in person about the great opportunities ahead for the industry.

– Paul R. Hughes

c: 321.217.7477

e. phughes@libertateins.com