The landscape of workers’ compensation insurance is evolving, with a trend toward more competitive rates in many regions. According to recent analysis by S&P Global Market Intelligence, the first quarter of this year saw decreased workers’ compensation insurance rates in 36 states. This shift could potentially bring about substantial savings for businesses that make an informed decision to shop around for the best workers comp insurance companies. In a market marked by change, staying informed about the latest rate modifications can ensure businesses not only save money but also provide the best coverage for their employees.
Significant Rate Reductions for Workers Comp Insurance in Q1
Analysis by S&P Global Market Intelligence reveals that workers compensation insurance rates were decreased in 36 states during the first quarter of this year, presenting an opportunity for businesses to shop around for the best coverage. Notably, there were 79 rate cuts spread across nine states, which generated an aggregate calculated premium change of $22.3 million. It shows the market’s proactive steps in reducing insurance rates, underscoring the value of comparison shopping for the best workers comp insurance companies.
Leading Insurance Companies Offering Competitive Rates
AmTrust Financial Services Inc. ranked second for the largest rate reduction, having approved 39 rate decreases in the first quarter. This move results in a significant premium change of $20.3 million. Meanwhile, Missouri Employers Mutual Insurance Co. achieved the highest single rate decrease. A 5% cut, effective from Jan. 1, is projected to lower comp insurance premiums by $9.7 million for roughly 13,500 new and renewing business policyholders.
An Overview of State-by-State Rate Changes
In terms of geographic distribution, Georgia and South Carolina emerged as the leading states in approving rate cuts in the first quarter. Georgia regulators approved 206 rate decreases while South Carolina allowed 314 rate reductions to take effect. On the flip side, the most notable rate hike was in California. SiriusPoint Ltd. increased its comp insurance rates by 8.3% starting Feb. 24 for new and renewal businesses.
In a market that shows fewer rate increases nationwide than the previous quarter, businesses are encouraged to explore their options and shop around for the cheapest workers comp insurance. Looking for the best workers comp insurance companies should not only be about finding lower rates but also securing adequate coverage for employees.