As Predicted, Work Comp on a Slippery Slope

National Underwriter reported today that employers cost of work comp has dropped significantly across the country but medical costs have risen expotentially over the last few years. This puts the whole work comp insurance market on a slippery slope. I have tracked this in this blog over the last year. My concern for my cleints and business owners is a radical change in work comp costs because of rising medical costs. Something is going to change soon. Insurance companies are not going to continue reducing work comp rates in an environment of soaring medical costs. My prediction is overnight the market will adjust rates and business owneres will see 15-20% increases in work comp premium. I am not sure when this will occur but the current trends are going to force something soon. Until next time know your risks and be careful out there. K

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