Competitive State WC Funds Post YoY Growth: AM Best

• AM Best reported Tuesday that 13 of the 16 competitive U.S. workers’ compensation state funds generated year-over-year growth in net premiums written.
• The competitive state funds posted a combined ratio after policyholder dividends of 105.8 in 2023, compared with 88.7 for the workers’ compensation line, with 10 of the 16 funds recording a combined ratio above 100. 
• Excluding policyholder dividends, the 2023 combined ratio for the state funds was 89.7.
• The growth, despite pricing declines, was fueled by improved economic conditions and strong payroll growth in many states.
• The aggregate direct premium of $6.9 billion in 2023 represented a third-straight year of growth following 2020 when premium levels dropped due to the pandemic. 
• These state funds compete with private carriers while also serving as their state’s guaranteed market. The focus of this report is on the 16 active U.S. competitive state funds; it excludes the state funds in North Dakota, Ohio, Washington, and Wyoming.
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Arkansas DoL to Tap AI Platform on WC Enforcement

• The Arkansas Department of Labor and Licensing will use Tyler Technology’s Augmented Field Operations platform to assist in managing inspections, including for workers compensation and labor code enforcement.
• Under the 20-year licensing agreement, DLL hopes to conduct more inspections across the state in less time, state Labor Secretary Daryl Bassett said in the announcement.
• The company claims the state can analyze historical site and census data, past visits and violations, which will help prepare personnel for on-site inspections and identify potential hazards that may have been overlooked.
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