Fla. workers compensation case could lead to higher costs | Business Insurance.
We are officially in a hard market.
This case will ensure another rate increase in FL on 1.1 in my opinion. After a +60% drop in rate, rates have been bumped up in the single digits over the last three years. For the first time in a while, FL is not an attractive market for many carriers as rate increases have not caught up with results. The state recognizes the issue and assuredly was not looking for this when trying to manage workers’ compensation costs. http://news.wfsu.org/post/fla-workers-comp-rates-rise-insurance-regulators-call-fixes
For the PEO industry, this s great news as long as they have aligned profitability and growth strategies with their carrier'(s) underwriting appetite. As was the case in the early 2000’s, “irrational capacity” is drying up and platforms to support tougher classes of business (staffing, transportation and heavy construction) are more rare. As will be reported later on, their is a huge spike in residual market (market of last resort for wc), which means voluntary placement/capacity is challenged. As a result, those that niche in these “tougher to place” spaces need to be careful to not build books that will not be supported. Absolutely capacity for it, but not off the shelf —
