Given the lack of deterioration in large WC carriers’ combined loss ratios, we expect similar aggressive targeting to grow market share in 2018. While returns for low-risk investment opportunities remain limited, the marketplace’s appetite for premium will drive growth but with prudent pricing.
However, there is underwriting discipline for those clients with poor loss results, declining financials, in tough states (i.e. FL, CA, and NY primarily) and those in more volatile industry classes.
Carriers will seek higher retentions as the result of client specific loss severity or in circumstances when clients are pursuing greater premium savings.
The market today
Forecast for 2018
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