Office of Insurance Regulation Report Finds Workers’ Compensation Market Competitive
The Office of Insurance Regulation has released its 2014 annual report on the state of the Florida workers’ compensation insurance market. The report concludes that the market currently is competitive, well-capitalized, and robust. The report points out that six of the 10 largest workers’ compensation insurers in Florida are Florida-domiciled, up from four in the 2013 market report. These insurers make up about 28% of the workers’ compensation premiums written in Florida
The competitiveness of the Florida market is evidenced by 95% of the state’s workers’ compensation premiums being written in private market insurers. Among the six largest states in the country, Florida is one of only two that are not heavily reliant on the state-created residual market.
Underwriting performance in Florida also has been sound, coming in second only to Texas among the six largest states. Meanwhile, since the Florida legislature enacted reforms in 2003, rates have fallen considerably. Florida had the highest rates in the country when the reforms were enacted, but now ranks in the middle (28th). The Office of Insurance Regulation cautions, however, that several key cases making their way through the courts could adversely affect the workers’ compensation market by eroding certain aspects of the workers’ compensation laws.