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Explore key industry drivers, cost factors, and economic outlook in workers' compensation and self-insurance presented by Steven Weeks of AmFed in April 2019. Gain insights on historical perspectives, internal and external examinations, industry prognosis, and a triage plan for efficient operations.
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MS Workers’ Compensation & Self-insurance: A Prognosis of the Industry Presented by Steven Weeks AmFed April 2019
Triage Plan • Setting the Tone – a historical perspective • Vital Signs • Internal Examination • Loss dollar • Rate adequacy • Expense load – or cost of production including excess • External Examination • Competition • Medical Costs • NCCI • Legal Environment • Prognosis - ?
Expenses – a key driver • On average the commercial insurance industry is operating at a 25% - 32% expense load. This leaves 60% of the premium dollar to pay claims and 8% -15% profit margin. • Expenses • Underwriting, claims, risk management • Ancillary costs and services – accounting, actuarial, taxes, fees and other expenses • Acquisition costs/commissions • Excess coverage • As an industry, are we efficient?
Outlook • Commercial market • Profitable results continue to be published. • Policyholder surplus at historic levels. • Cumulative rate change of -48.1% since 2009. • Full-employment concerns. • Longest economic expansion since WWII. • Yield curve inversion. • Recession on the horizon?
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Partnering with AmFed • AmFed is committed to providing a superior workers’ compensation product to both the commercial and self-insured industries: • Competitive Rates and Pricing • Multi – State Coverage options • A.M. Best A- rated • Digitally Savvy • Online payments, safety courses and claims extranet for insureds • Online quoting and accessibility for agents