Yes, It’s time to worry but we won’t, as we never do. As market underwriting softens, rates are reduced, discounted WC programs are put in place and the losses look really low, that’s when we don’t pay any attention to a line of coverage. Inevitably, the losses will creep up and/or skyrocket and the next thing you know…we’re off to the “hard market derby” with finger pointing, bankrupt carriers, “I told you so’s” and overcompensating legislation to “correct the crisis”. We do it every time (at least every time that has happened since 1984 when I got in the insurance business that is). The insurance business never, ever learns any lessons with market cycles. But we have really, really advanced “computer models” so…that’s cool, right?
Litigation reform is still lacking in states like CA where it’s become the norm to sue for basic benefits. Exclusive remedy is essentially dead thanks to the applicants attorney chokehold on legislative agendas. The new penalty in CA for not having health care may benefit a few outcomes, but the 1% threshold for obligating worker’s comp is a big fraud black hole.
Yes, It’s time to worry but we won’t, as we never do. As market underwriting softens, rates are reduced, discounted WC programs are put in place and the losses look really low, that’s when we don’t pay any attention to a line of coverage. Inevitably, the losses will creep up and/or skyrocket and the next thing you know…we’re off to the “hard market derby” with finger pointing, bankrupt carriers, “I told you so’s” and overcompensating legislation to “correct the crisis”. We do it every time (at least every time that has happened since 1984 when I got in the insurance business that is). The insurance business never, ever learns any lessons with market cycles. But we have really, really advanced “computer models” so…that’s cool, right?
Litigation reform is still lacking in states like CA where it’s become the norm to sue for basic benefits. Exclusive remedy is essentially dead thanks to the applicants attorney chokehold on legislative agendas. The new penalty in CA for not having health care may benefit a few outcomes, but the 1% threshold for obligating worker’s comp is a big fraud black hole.