Claim accepted: Rising interest rates are anticipated to boost industry revenue and profitability

Rebounding labor market conditions and surging equity markets have driven performance in the Workers' Compensation Insurance industry. Largely due to improving employment conditions, net workers' compensation premiums written increased. In total, increased policy volumes and improvements in the labor market are expected to increase industry revenue over the five years to 2017. While industry operators only invest a portion of assets in equities, appreciating equity prices help boost industry profitability. Over the five years to 2022, industry revenue is forecast to increase. Coupled with a favorable employment outlook, rising interest rates are anticipated to boost both industry revenue and profitability...read more.

Industry Statistics & Market Size
Revenue
$53bn
Annual Growth 12-17
2.7%
Forecast Growth 17-22
Profit
Employment
54,903
Businesses
1,414
Market Share of Companies
What Our Customers Say

Industry Threats & Opportunities

  • A rising Federal Funds Rate led industry investments in debt securities to yield more, increasing revenue
  • A sharp improvement in the industry's combined ratio caused profit to increase rapidly
  • Industry operators are expected to adjust their asset portfolios to generate higher returns
  • Industry Report - Industry Key Buyers Chapter

    The Workers' Compensation Insurance industry has a low level of market share concentration. The top four companies are expected to account for just 22.3% of industry revenue in 2017. However, the industry has trended toward consolidation along with the broader insurance sector in recent years as a result of increased regulatory pressure. Moreover, larger insurance carriers are acquiring competitors with specialties in high-growth, niche insurance lines, such as workers' compensation insurance, to combat maturity in the domestic insurance market. Consequently, the number of industry operators is anticipated to decline at an annualized rate of 1.5% to 287 over the five years to 2017. Bro...purchase to read more.

    Additional Insights for the Workers' Compensation Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Workers' Compensation Insurance Industry are

  • Ability to effectively manage risk
  • Management of a high quality assets portfolio
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as Number of employees and Number of work-related deaths in the Workers' Compensation Insurance industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of employees
  • Number of work-related deaths
  • Yield on 10-year Treasury note
  • Regulation for the Property, Casualty and Direct Insurance Industry
  • S&P 500

  • Current Performance
  • Workers’ compensation structure
  • Premium and profit trends
  • Medical costs contrast claims frequency
  • Chart: Revenue Growth

  • Industry Outlook
  • Business conditions and government involvement
  • Investment conditions
  • Legal costs and terrorism coverage
  • Table: Workers' Compensation Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Workers' Compensation Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Manufacturing
  • Transportation and Warehousing
  • Administration, Business Support & Waste Management Services
  • Healthcare and Social Assistance

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers
  • Third-Party Administrators & Insurance Claims Adjusters

  • Products & Services
  • Medical benefits
  • Cash benefits
  • Investment income
  • Chart: Workers' Compensation Insurance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Trade, transportation and utilities
  • Construction
  • Natural resources and mining
  • Other
  • Professional and business services
  • Government
  • Manufacturing
  • Chart: Major Market Segmentation for the Workers' Compensation Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Medical, cash and death benefits
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Workers' Compensation Insurance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Workers' Compensation Insurance Industry

  • Industry Globalization
    Travelers Companies Inc.The Hartford Financial Services Group Inc.
  • Table: Travelers Companies Inc. - financial performance
  • Table: The Hartford Financial Services Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Workers' Compensation Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Workers' Compensation Insurance Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Work-Related Deaths (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Combined Ratio
  • A measurement of a firm's underwriting performance and profitability; equal to incurred losses plus expenses divided by earned premium.
  • Fixed-Income Securities
  • An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity.
  • Underwriting
  • The process by which insurers assess the risks to insure and decide how much to charge for those risks.
  • Why buy this report?

    The Workers' Compensation Insurance industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Workers' Compensation Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Workers' Compensation Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Workers' Compensation Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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