Workers compensation is seeing more changes ahead and is vastly different than it was a decade ago. Due to the rising costs of medical treatment and the impending Affordable Care Act, the third—largest writer of workers compensation is leaving he stand-alone market.

AIG has said one of the reasons it was exiting the stand-alone business was due to the Affordable Care Act, citing ‘increased vulnerability to the risk of further cost-shifting the excess workers compensation class of business in particular.’

The Affordable Care Act, nearly 33 million people will have health insurance coverage which will cost $1.1 trillion. This situation will spark an increased in medical attention demand with more people seeking out doctors and causing cost-shifting.

AIG is not the only insurance company looking to refocus. Many like Harford Financial said it will be looking to get out from the ‘multi’ aspect of their coverage and only focus on its mutual funds business, its property and casualty insurance, and group benefits.  Many insurance experts agree that multiline insurance operations are facing challenges in the near future.