Marsh Sees Q2 Workers Compensation Revenue Decrease

• MarshMcLennan reported that its second-quarter revenue from its workers compensation business decreased in “low single-digits,” without specifying a figure. 
• The company reported a similar decline for the first quarter.
• Typically, the company does not report details on the segment.
• In an earnings call with analysts on Thursday, management said the Marsh Global Insurance Market Index was flat overall in the three-months to the end of June versus a 1% increase in the first quarter.
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TWFG IPO Raises $187 Million

• Texas-based TWFG raised $187 million in its July 18 initial public offering, giving the personal and commercial insurance distributor a market value of about $1.2 billion.
• Its lines include workers compensation products.
• The company has a physical presence in 41 states and the District of Columbia, and is licensed in all 50 states. A significant portion of the company’s business is concentrated in Texas, California and Louisiana.
• The company touts as its competitive strength a turnkey “agency-in-a-box” solution for captive and independent agents, according to its regulatory filings.
• “We attract a diverse mix of agents to our platform, particularly those with experience, some of whom are in the prime of their “growth years” and some of whom are interested in succession planning and eventual monetization of the business they have built,” the company said.
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Connecticut Captives Expect More Flexibility Under New Law

• A new Connecticut law enables protected cells of sponsored captives to convert into a new captive. 
• Due to go into effect on Oct. 1, the law permits businesses initially insured through a protected cell to also form a new captive and convert their assets, benefits, obligations and liabilities into the new captive without affecting said assets and liabilities, according to a statement from Insurance Department Commissioner Andrew Mais.
• “We recognize the evolving insurance and risk management needs of businesses, and our recent legislative advancements, combined with the state’s expertise and innovation, reinforce Connecticut’s position as a premier domicile for captives,” the commissioner added.
• Connecticut’s market has expanded from a single captive in 2012 to 46 in 2023, with 11 of them owned by Fortune 500 companies, according to a recent Insurance Department report.
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Baldwin Group Sees WC Remaining Competitive in Midyear Report

• A midyear market report this week from The Baldwin Group said workers’ compensation remains competitive with plenty of capacity and stable rates.
• The Tampa, Florida firm said it is seeing an average rate decrease of 1.8%.
• Workers’ compensation is an area of potential cost savings for insureds, as insurers look to increase profitable business, Baldwin noted.
• However, medical inflation, an aging workforce, and state regulations could adversely affect claims patterns, the report added.
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