Louisiana’s largest workers’ compensation insurance company, Louisiana Workers’ Compensation Corporation (LWCC) announced that A.M. Best has upgraded LWCC’s financial strength rating from an “A-” to an “A” (Excellent), Financial Size Category IX ($250 million – $500 million in surplus).
The company said the upgrade reflects the ratings company’s “faith in LWCC’s ability to practice underwriting discipline in a chaotic marketplace.”
LWCC added that while reeling from the effects of underpricing and deteriorating underwriting results, the insurance industry as a whole was dealt a devastating blow on Sept. 11, causing an increase in insurer failures and increased pricing among the rest. It indicated that the company has not been immune to these national market conditions and has had to increase its pricing this year. Even with the increases, the cost of coverage with LWCC is still 40 percent less than when the company entered the marketplace 10 years ago.
Since workers’ compensation coverage is required by law for employers in Louisiana and most other states, its availability has a huge impact on the state’s economy.
LWCC is a private insurance company owned by the 25,000 Louisiana businesses who are its policyholders.
Topics Workers' Compensation Louisiana
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