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Workers' Compensation Insurance in the US Industry Data and Analysis
Workers’ compensation insurers have experienced tumultuous changes in recent years, affecting both short-term and long-term growth. Safer workplaces and improved safety technology have significantly reduced the frequency of injuries, thereby boosting short-term profit for workers’ compensation insurers by lowering claim payouts. At the same time, fewer claims because of slowing workplace injuries and deaths, a soft pricing cycle and shifting economic conditions have slowed long-run revenue growth and driven volatility. Interest-rate swings have caused significant shifts in economic activity, prompting some employers to self-insure or forgo coverage, even as strong investment income from higher bond yields has partially offset revenue weakness. Within this landscape, heavy trucking activity remains a key growth engine, as rising freight volumes and busy roads sustain demand for higher-risk coverage and richer cash benefits. Meanwhile, the rapid adoption of AI in claims and underwriting has improved efficiency, reduced wage and loss costs and strengthened fraud detection, further supporting profitability and giving larger carriers the capital to expand or consolidate in a still-evolving market. Overall, revenue for workers’ compensation insurance companies has dwindled at a CAGR of 1.8% over the last five years, reaching $51.2 billion in 2025. This includes a 1.3% drop in revenue in that year.
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What's included in this industry analysis
IBISWorld's research coverage on the Workers' Compensation Insurance industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released December 2025.
About this industry
What's this industry report about?
The Workers' Compensation Insurance industry in the United States operates under the NAICS industry code OD4781. Providers underwrite (i.e. assumes the risk and assigns premiums for) workers’ compensation insurance, which protects businesses from liabilities related to workplace injuries. Products include medical benefits, cash benefits and investment income. Related terms covered in the Workers' Compensation Insurance industry in the United States include underwriting, combined ratio and fixed-income securities.
What's included in this industry?
Products and services covered in Workers' Compensation Insurance industry in the United States include Medical benefits, Cash benefits and Investment income.
What companies are included in this industry?
Companies covered in the Workers' Compensation Insurance industry in the United States include The Hartford Financial Services Group, Inc., Zurich Insurance Group Ltd. and The Travelers Companies, Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Workers' Compensation Insurance industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Workers' Compensation Insurance industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Workers' Compensation Insurance industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Workers' Compensation Insurance industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Workers' Compensation Insurance industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Workers' Compensation Insurance industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Workers' Compensation Insurance industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Workers' Compensation Insurance industry in the United States.
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Frequently Asked Questions
What is the market size of the Workers' Compensation Insurance industry in the United States in 2026?
The market size of the Workers' Compensation Insurance industry in the United States is $51.2bn in 2026.
How many businesses are there in the Workers' Compensation Insurance industry in the United States in 2025?
There are 150 businesses in the Workers' Compensation Insurance industry in the United States, which has declined at a CAGR of 2.5 % between 2020 and 2025.
How may import tariffs affect the Workers' Compensation Insurance industry in the United States?
The Workers' Compensation Insurance industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Workers' Compensation Insurance industry in the United States?
The Workers' Compensation Insurance industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Workers' Compensation Insurance industry in the United States grown or declined over the past 5 years?
The market size of the Workers' Compensation Insurance industry in the United States has been declining at a CAGR of 1.8 % between 2020 and 2025.
What is the forecast growth of the Workers' Compensation Insurance industry in the United States over the next 5 years?
Over the next five years, the Workers' Compensation Insurance industry in the United States is expected to decline.
What are the biggest companies in the Workers' Compensation Insurance industry in the United States?
The biggest companies operating in the Workers' Compensation Insurance industry in the United States are The Hartford Financial Services Group, Inc., Zurich Insurance Group Ltd. and The Travelers Companies, Inc.
What does the Workers' Compensation Insurance industry in the United States include?
Paying medical benefits and Paying cash benefits are part of the Workers' Compensation Insurance industry in the United States.
Which companies have the highest market share in the Workers' Compensation Insurance industry in the United States?
The company holding the most market share in the Workers' Compensation Insurance industry in the United States is The Hartford Financial Services Group, Inc..
How competitive is the Workers' Compensation Insurance industry in the United States?
The level of competition is high and increasing in the Workers' Compensation Insurance industry in the United States.
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