Despite the negative impact of low interest rates and mounting medical costs, rising net premiums written and booming equity markets have driven the performance of the Workers Compensation Insurance industry in recent years. Given that the industry's premiums are directly tied to domestic labor market conditions, workers compensation insurers were harmed significantly more by the recession compared with their general property and casualty counterparts. Yet, with recovering job growth, the industry's premiums have rebounded rapidly from 2010 to 2015. Continued improvements in domestic employment conditions and gradual increases in interest rates are anticipated to boost both net premiums written and investment income for the industry over the next five years. Additionally, the slow descent of the unemployment rate should similarly increase demand for insurance coverage offered by industry operators, simultaneously improving the industry's average profit margin.
This industry underwrites (i.e. assuming the risk and assigning premiums) workers' compensation insurance, which protects businesses from liabilities related to injuries at the workplace.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.