WC Lines Continue to Drive P&C Profitability

The U.S. workers’ compensation line of coverage remains a key driver of the profitability of the property/casualty insurance, although economic uncertainty could cause some turbulence for insurers in the near to midterm, according to a new AM Best report.
The WC line notched its lowest combined ratio in five years at 88.8% in 2024, outperforming all other major property/casualty lines despite a 6.9% drop in net premiums written and accelerating pricing cuts, according to analysis of the sector by AM Best.
“Workers’ compensation is the key line of business driving the profitability of the whole property/casualty industry, and underwriting profits over the past decade have been largely attributable to favorable prior-year loss development,” said Christopher Graham, senior industry analyst, Industry Research and Analytics for AM Best.
The firm said midyear results 2025 results indicate another profitable year in the making and another decrease in premium in line with more rate decreases.
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A District of Columbia law has gone into effect this month allowing workers receiving workers compensation benefits from a state system to also seek benefits in the District.
The Parity in Workers Compensation Recovery Amendment Act of 2025 amends the District of Columbia Workers Compensation Act of 1979 to ensure that receiving compensation from another state’s workers compensation law does not prevent an employee or their dependent from filing a claim under the District’s workers compensation law for the same injury or death.
However, any compensation awarded under the District’s law will be reduced by the amount received from the other state’s compensation. This change aims to provide equitable recovery options for workers who may be eligible for benefits from multiple jurisdictions.
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The Michigan Supreme Court will hear arguments this week on a question that could decide whether the state has been improperly denying injured worker benefits to people without legal status.
The Michigan Immigrant Rights Center is challenging a Michigan Court of Appeals decision from last year that dismissed its case because the deadline to file had passed.
“If we want work conditions that are dignified, fair and healthy, we must ensure that workers’ compensation system is administered as intended to protect all workers,” said MIRC attorney Anna Hill Galendez.
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Texas has been named one of the least safe states in America, ranking 48th overall, according to a new WalletHub study comparing safety across all 50 states.
To determine which states offer the most security, WalletHub analyzed 52 key indicators of safety, grouped into five categories: personal and residential safety, financial safety, road safety, workplace safety, and emergency preparedness.
The state was ranked 33rd in workplace safety in the study, which scored states on: Fatal Occupational Injuries per 100,000 Full-Time Workers; Injuries & Illnesses per 10,000 Full-Time Workers; Median Days Lost Due to Occupational Injuries & Illnesses; and, Presence of Occupational Safety & Health Act Plans.
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