Delaware to Set Lower WC Rates for 2025

• Delaware will cut voluntary market workers’ compensation rates by 8.4% and residual market rates by 9.21%, effective Dec. 1, according to the state’s Department of Insurance.
• “This year we’re seeing on the voluntary market a decreased average of about 8.4%, and the residual market will see an average reduction of 9.21%,” said Delaware Insurance Commissioner Trinidad Navarro. “The residual means that those who have difficulty obtaining affordable workers compensation insurance because of claims, history or other variables can go to the residual market to find coverage.”
• Navarro noted that this year’s decrease continues the reversal of voluntary and residual market trends, as it is the third year of this trend showing significant improvement in coverage affordability and employee safety.
• Companies that previously could only obtain residual market insurance can now obtain traditional voluntary market coverage, he said.
  READ MORE

Kentucky to Reduce WC Rates After Lost Costs Drop More Than 8%

• The Kentucky Department of Insurance is cutting the cost of workers’ compensation insurance after seeing an average reduction of 8.4% in loss costs.
• This will be the 19th-consecutive year of decreases, the agency said.
• The loss cost figures show an overall reduction for class codes used in Kentucky. The industrial classes include manufacturing, office and clerical, contracting and goods and services. Class codes are assigned to businesses based on the type of work employees perform.
• The new rates will be effective Jan. 1, 2025.
  READ MORE

Constitution Insurance Gets Rating Confirmation from AM Best

• AM Best has renewed its ratings for Constitution Insurance Company, which participates in a quota share reinsurance transaction of workers’ compensation business from a commonly owned insurer, according to the rating agency.
• Cambridge, New York-based Constitution received a Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent). The outlook is stable.
• Constitution was assessed as having a very strong balance sheet, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
• Its combined ratio has declined from a high of 309.3% in 2018 to 85.8% in 2023. 
• Earlier, less favorable combined ratios were driven primarily by low premium volumes, as the company transitioned to its current business plan.
  READ MORE

Travelers’ Favorable WC Loss Experience Helps Offset Broader Unfavorable Experience

• Travelers reported Thursday that better-than-expected loss experience in its workers’ compensation product line for multiple accident years helped to partially offset its net unfavorable prior-year reserve development that was driven by an addition to asbestos reserves of $242 million.
• The company said strong pricing was broad-based with renewal premium change at or close to double-digits in every line other than workers’ comp.
• The insurer reported revenue for the third quarter ended Sept. 30 was $11.90 billion, up from $10.64 billion a year earlier.
  READ MORE