AmTrust secures notable workers' comp rate hikes in Q1

AmTrust Financial Services Inc. recorded eight of the 10 most notable calculated premium increases by US workers' compensation insurers in the first quarter, according to an S&P Global Market Intelligence analysis.

The most impactful rate increase will affect about 4,700 policyholders of Wesco Insurance Co. The insurer's request to increase its overall rate by 6.9% in Pennsylvania — translating into a calculated premium change of $2.4 million — took effect May 1 for both new business and renewals.

The second most substantial rate increase for the group was implemented by the same subsidiary in Connecticut: a 12.2% rate hike resulting in a calculated premium change of $1.9 million that will impact about 2,300 policyholders starting June 1 for both new business and renewals. The other rate increase by Wesco Insurance Co. included in the 10 most notable calculated premium increases was its 12.5% rate hike in North Carolina.

AmTrust Financial subsidiary Technology Insurance Co. Inc. also secured rate hikes of 6.6% in Pennsylvania, 21.4% in Oklahoma and 9.5% in North Carolina.

Other AmTrust Financial subsidiaries on the list with impactful rate changes are AmTrust Insurance Co. and Security National Insurance Co. (TX)

Great American tops workers' comp rate hike chart

The most significant rate hike approved during the first quarter of 2024 was granted to a subsidiary of American Financial Group Inc.'s Great American Contemporary Insurance Co.

Republic Indemnity Co. of America secured the most impactful single rate hike disposed during the period. Its 2.9% rate increase in California translates to a calculated premium increase of $5.5 million. The new rate took effect March 1 for both new and renewal businesses and impacts about 5,600 policyholders.

_{All figures in this analysis are based on as-reported numbers filed in the rate filings of each subsidiary in each state. The calculated premium change is not a final projection of the additional premium the insurer may receive in the upcoming year. The calculated premium change is reported by each insurer to reflect the most impactful premium changes based on the combined impact of the percentage change and the amount of business it affects. Changes to the insurer's policy mix or policies in force are not factored into the analysis.}

_{US states employ a variety of rate regulation mechanisms, including prior approval, modified prior approval, file and use as well as use and file. Some states do not require explicit regulatory approval prior to insurers using new rates. This analysis is based on when rate filings are "disposed" by state regulators and does not take into account when those new rates became effective for new and renewal business. In some instances, a new rate may have been in effect prior to the month the filing was approved by the regulator.}

AmTrust also leads on rate decreases

At the other end of the spectrum, the most significant rate decrease was granted to AmTrust subsidiary Wesco Insurance Co. Its 35.7% rate cut translates to a calculated premium change of $17 million. This rate change took effect Jan. 1 and was reported to affect about 2,200 policyholders in Connecticut.

The second-most notable calculated premium decrease, a 4% rate change, was granted to Missouri Employers Mutual Insurance Co., with a calculated premium change of $8.1 million. This rate change is reported to affect about 13,600 policyholders.

– Read an article about California's State Compensation Insurance Fund. – Download a template to analyze rate filings across select entities, lines of business and state over selected periods of time.