Insurity Releases “Staff’ Compensation Trade Developments” Report Primarily based on Valen Information Consortium Insights

Trends show COVID-19 effects on new business offerings, renewals and expected premium losses for insurance carriers

Insurity, a leading provider of cloud-based systems for insurance carriers, brokers and MGAs, today published its report on the trends in the workers’ compensation industry. The exclusive study reveals four converging trends related to COVID-19 that are expected to impact insurers’ portfolios in 2021. The study was based on a $ 60 billion employee compensation policy and damage data from Insurity’s proprietary Valen Data Consortium from Q1 to Q3 2020.

The pandemic has exacerbated challenges for the labor compensation industry, where loss costs have been falling for years and cost ratios are rising. This, along with the findings in this report on new business, renewals, and expected premium losses, underscores the need for an increased focus on underwriting excellence so that insurers can protect and maintain loss ratios while looking for premiums in the current and post-pandemic compete marketplace.

“Our consortium data shows what actually happens on site during the pandemic and gives an overview of what to expect for insurers,” said Kirstin Marr, Head of Data Solutions at Insurity. “Our analysis shows that new business is becoming increasingly difficult to find, while insurers may also be able to return a significant amount of premium on post-exams. On top of that, investment returns are at all-time lows. This leads to one fair premium endangers and creates urgency in terms of improved risk selection, pricing and portfolio management practices – not only to secure loss percentages but also to differentiate from the competition. “

“The trends show that insurers are facing pressures from three main areas: decline in new business, stagnation in renewal, and the potential return on substantial premiums from retrospective reviews that reflect pandemic layoffs and vacation days,” said JJ Ihrke, head of analytics and chief scoring officer at Insurity. “With new business prices down as much as 23% in some industries, achieving profitability from underwriting is incredibly important as insurers simply cannot afford to miss out on scarce new business opportunities.”

The story goes on

Download the Workers Compensation Industry Trends report at https://go.insurity.com/WC-2021-1-WorkersCompTrends-Report_LP-Content-Download.html for key trends, analysis, and steps to navigate this challenging environment.

Via the Valen Data Consortium

The study was based on findings from the Valen Data Consortium, the P&C industry’s largest proprietary database of P&C policies, claims, billing and filing data, valued at a total of $ 100 billion ($ 60 billion to employee bonus). It contains over 20 years of employee compensation data, including transactional and behavioral information such as risk profile, attributes, policies and claims history.

About uncertainty

Insurity is a leading provider of cloud-based systems for insurance carriers, brokers and MGAs. With its world-class digital platform and unmatched industry experience and thought leadership, Insurity is uniquely positioned to deliver exceptional value and empower clients to focus on their core business, streamline their operations and deliver superior policyholder experiences. With users worldwide and more cloud-based deployments than any other core system provider in the Insurtech sector, 15 of the 25 leading property and casualty insurers in the USA trust Insurity. More information is available at www.insurity.com.

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contacts

Fusion PR on behalf of Insurity
Ross Blume, (310) 481-1431
[email protected]