A.M.BestTV: ‘First Monday’: U.S. State Funds Ride Market Momentum

OLDWICK, N.J.--()--In this first of four “First Monday” episodes, A.M. Best’s Senior Financial Analyst W. Dolson Smith says increased payrolls, along with higher premium rates and more stringent underwriting, has led to a fourth consecutive year of growth, based on net premiums written, in the U.S. workers’ compensation residual market. Click on http://www.ambest.com/v.asp?v=fmstatefunds715 to view the video program.

The remaining “First Monday’ episodes will focus on interviews conducted with A.M. Best’s Director of Analytics Catherine Thomas and Managing Director of Analytics Stefan Holzberger on how traditional business models in the London market are threatened by changing market dynamics and economic uncertainty; how London’s standing as a key global insurance center would be diminished if the United Kingdom were to exit the European Union; and how market conditions and the looming start of Solvency II have prompted European insurers to increasingly tap capital markets. “First Monday” is A.M. Best’s monthly program featuring commentary by the company's leading analysts.

The U.S. competitive state compensation funds have been on a solid run in recent years. Seven of the 19 state funds have workers’ compensation market shares of at least 50% in their respective states, and overall these state funds have substantially improved. Smith attributes this improvement to the substantial growth that has taken place over the last four years. “Three factors are responsible for the recent growth: improved pricing, greater macroeconomic activity and due to hardening pricing employers are seeking out state funds to a greater degree.”

Additionally, concerning this week’s American Association of State Compensation and Insurance Funds Annual Conference, Smith states, “A.M. Best will be looking for the attendees to discuss workers’ compensation, the exposure of insurance companies to terrorism and the potential for state funds to loss their tax exemption by legislation at the federal level.”

Recent episodes of A.M.BestTV include:

  • Insurers Explore New Paths to Asset Management: Insurers are searching for growth and better yields through new investment opportunities via asset managers, private placements and global venues: http://www.ambest.com/v.asp?v=asset615.
  • Captive Proponents Push to Clarify Premium Tax Issue: Two senators recently reintroduced legislation that proposes to amend the Nonadmitted and Reinsurance Reform Act of 2010, which determines how surplus lines taxes are paid by nonadmitted insurers: http://www.ambest.com/v.asp?v=nrra615.
  • AXIS’ CEO and PartnerRe’s Chairman Tout Benefits of Announced Merger: A recent interview given by Albert Benchimol, president and chief executive officer at AXIS Capital Holdings Limited and Jean-Paul Montupet, chairman at PartnerRe Ltd, concerning the proposed merger between their two companies: http://www.ambest.com/v.asp?v=ap615.
  • Insurers Warn of Looming Talent Gap: Highlights from the Insurance Industry Charitable Foundation’s Women in Insurance Global Conference in New York, NY, where insurers said the insurance workforce is aging without an adequate influx of younger management talent: http://www.ambest.com/v.asp?v=iicf615.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Lee McDonald
Group Vice President, Publication and News Services
908-439-2200, ext. 5561
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald
Group Vice President, Publication and News Services
908-439-2200, ext. 5561
lee.mcdonald@ambest.com