Historically, insurance is a product that tends to shift through cycles with insurance carriers. As changes occur to the economy, climate (wildfires, earthquakes, etc.), laws, and more it affects the way that insurance carriers think and react.
Recently, we’ve experienced an uptick in auto insurance premiums, especially in California. More people are on the roads due to cheaper gas, bumper damage costs increased due to back up cameras, and distracted driving with mobile devices began to cause more accidents. These are the primary factors behind the rapidly increasing auto insurance rates.
Similarly, we are now seeing a trend in the opposite direction with relation to workers compensation insurance. Carriers are becoming more lenient in the types of risks they want to insure. A few years ago, a carrier might not write a higher risk manufacturing plant, and today that same carrier might be aggressively chasing that same risk. They also seem to be more lenient on loss history and experience modifications. This is good news for all business owners, as the competitive market has opened up and created outstanding opportunities for the consumer.
Additionally, as more and more carriers jump on this trend of wanting to increase their market share of workers compensation business, we are seeing pricing become increasingly competitive. Carriers seem to be more willing to add credits to new business opportunities, as well as renewal business to retain the account.
Now is a fantastic time to consider a review of your workers compensation. If you would like HWP Insurance to take a look, please contact us at your convenience and we’ll be ready to help.