What are Agents to do... WC Premiums rising, Insureds Can't pay it

As predicted by many in the industry the long soft market in work comp has deteriorated the profitability in this line of insurance. This has forced many States in the country to ask for rate hikes over the next 12 months. Though needed by the insurance companies to preserve the market, business owners are not ready for the increase. Profits and sales are at all time lows for most businesses and having to pay more for work comp premiums comes at a bad time. For agents this creates a lot of pressure on them because they will be delivering the increased premium bills and having to collect it. What should have happened over the last few years was a gradual increase in rates to make the market viable. Now, the industry finds itself asking for double digit increases which is the proverbial "knee jerk" rate change. We agents who have been around long enough to have seen this before, know that the renewal process with your clients becomes difficult. Premium increases are never pleasant. Until next time be careful out there and know your risks. K

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