U.S. Workers' compensation market is anticipated to grow significantly over the forecast period. Workers' compensation provides medical care and cash benefits to employees injured in the workplace premises along with providing survivor benefits to the dependents of employees or workers whose deaths result from work related accidents. In 2018, workers' compensation providers in the U.S. earned around USD 61,000 million from the insurance premium. The monetary benefits in workers’ compensation vary depending on the duration and severity of the employee's disability.
Workers’ compensation is regulated by the state legislation with each state determining the type of injury to be covered, the evaluation process, delivery of medical care, and benefits an employee may receive. In 2016, California state passed a law applicable from January 1, 2017, wherein any worker corporation with seven or more members must obtain workers compensation for its worker-owners, even if all employees serve on the Board of Directors.
The average expenditure on employee safety & wellbeing is increasing each year. According to the Labor Department, wages and salaries paid to employees and workers in the private sector in 2018 rose 3.1% from 2017 illustrating the highest year-over-year gain since 2008. However, the premium volume declined in the past two years owing to safer work environments, with low work-related injuries.
Some of the key players operating in the U.S. workers’ compensation market are The Travelers Indemnity Company; The Hartford; Berkshire Hathaway Group; Zurich; AmTrust Financial; Liberty Mutual Insurance; Chubb; State Ins. Fund; Washington State Fund; and BCBS of MI Group. Some of the strategies undertaken by the U.S. workers’ compensation market players are partnerships, collaborations, and rise in business investments. In any merger & acquisition deal, the acquiring company is responsible for all workers’ compensation liabilities leading to higher penalty premiums in case of mismanaged claims.
In August 2018, the Hartford announced its agreement to acquire Navigators, an insurance holding company specializing in professional services, energy, construction, environmental, and life sciences. The acquisition will provide Hartford a hold of Navigators’ operations in the U.S. Insurance, International Insurance, and Global Reinsurance business segment.
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