Fitch Sees Weaker Combined Ratios

Fitch expects U.S. workers’ compensation underwriting margins to weaken, with combined ratios shifting into the mid-90% territory over the coming years.
That comes after WC line has for several years been the strongest performing major commercial product line in the U.S. property and casualty industry.
The financial data firm on Tuesday published its “U.S. Workers’ Compensation Dashboard: FY 2024”.
Reserve redundancy estimated between 8% and 12 %, or equivalent to $11 billion-$17 billion at year-end 2023, is being eroded by recent lagging favorable development.
Softening pricing environments, rising medical inflation, and weaker reserve development could soon push the line toward breakeven.
Fitch hinted that if loss severity accelerates or competition intensifies, WC may no longer bolster P&C industry results as it has in the past.
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A Long Island, New York orthopedic spinal surgeon has been barred from treating patients with workers’ compensation claims, after state officials alleged he performed invasive and unnecessary procedures without medical justification, amounting to “professional misconduct”.
The New York State Workers’ Compensation Board rejected an application by Dr. Joseph Weinstein that would allow him to continue seeking reimbursement for the treatment of injured workers, according to records recently made public after the surgeon challenged the board’s decision in state court.
Weinstein is among a number of local surgeons who’ve been named in federal racketeering lawsuits alleging they conspired with a vast network of medical providers, lawyers and other individuals to collect millions in insurance payouts for bogus accident claims.
The board detailed four patients with workers’ compensation claims treated by Weinstein that they claimed lacked credible documentation or medical justification, exhibited billing irregularities or appeared to show a predetermined outcome on the need for highly risky surgeries.
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