Workers’ Compensation Insurance is profitable. Yes you read that correctly despite what you hear from the Insurance Industry about injured workers and the medical profession driving up Workers’ Compensation costs, the truth is in the bottomline. A recent Industry article from Insurance Journal acknowledged the positive signs for increased profits in Workers’ Comp. Yes, you read that correctly, Harry Shuford, chief economist for the National Council of Compensation Insurance said there is money to be made.
Some highlights:
Shuford noted there are encouraging signs in the numbers
• although premiums are up the key drivers seems to be economic growth;
• more people being insured;
• and tightening of underwriting standards.
Wow! Insurance Companies are actually trying to properly assess a risk and make their underwriting properly reflect reality!
So the next time you hear about all the horrible things that the injured worker is doing to the system by being injured, remember the insurance industry is making money and is even acknowledging that it has to have better standards for measuring its own risk, something that they are supposed to be doing anyway.