Rates Remain Competitive for Most Buyers

Workers’ compensation remains a profitable line for insurers, and buyers are benefiting from a competitive marketplace. In the second quarter of 2025, median rates for guaranteed cost programs fell 2.6%; median rates for loss-sensitive programs fell 1.2%, according to the latest edition of the Lockton Market Update.
The September report details conditions across property, workers’ compensation, liability, directors and officers liability (D&O), and cyber insurance.
The workers’ compensation market has demonstrated sustained profitability over the past decade, with insurers reporting a collective combined ratio below 90% for eight consecutive years and maintaining substantial reserves through the end of 2024.
Some industry experts are concerned that ongoing reserve releases have enabled favorable calendar year results, even as underlying accident year loss ratios may be deteriorating.
READ MORE

The Kentucky Supreme Court recently upheld the application of the Official Disability Guidelines (ODG) in the Commonwealth’s workers’ compensation system.
The case, Howell v. Floyd County Board of Education, involved a challenge to continued coverage of hydrocodone for Judy Howell, whose employer had paid for the medication for nearly 30 years.
Based on the 2018 ODG and supporting medical opinions, the court ruled that hydrocodone was “not recommended” and therefore no longer compensable under her claim.
According to Frost Brown Todd attorney Joanne Wissman Glass, this decision reinforces the authority of the ODG in guiding treatment decisions and supports employers’ ability to challenge outdated or unsupported medical expenses. While the “guidelines do not prohibit access to certain treatments outright, they do require clear medical justification for exceptions. The ruling also affirms deference to ALJs and the evolving nature of medical standards in workers’ compensation.”
READ MORE

Some Massachusetts state benefit recipients are getting a boost thanks to an increase in the indicator used to determine weekly maximums for unemployment, paid leave and worker’s compensation programs.
For benefits paid out through the Department of Industrial Accidents, the new minimum compensation rate is $384.50 for injuries on or after Oct. 1, with a maximum of $1,922.48.
State law requires the maximum weekly benefit amount for the programs to be revised annually based on the average weekly wage for the 12-month period that ended in March. During that period, the average weekly wage in Massachusetts increased from $1,829.13 to $1,922.48, according to the Department of Unemployment Assistance.
READ MORE