North Carolina Workers’ Compensation Policy Slump: Part of a National Trend
According to national media organizations like Bloomberg, sales of North Carolina workers’ compensation policies (and policies for workers’ comp across the country) have fallen significantly. A.M. Best, for instance, says that US workers’ comp policy sales declined by a precipitous 15% from 1999. According to the A.M. Best’s composite index for workers’ comp, sales dropped to just $12.3 billion – down from a high of $21 billion in 2004.
North Carolina workers’ compensation policy analysts believe that the problem might have to do with sluggish growth and a stable but high national unemployment rate (around 9.6% or so, as of August 2010). In other words, insurance companies are likely lowering their rates to compete – and the so-called “jobless recovery” means that employers are not hiring as many people and thus don’t need as many policies. Companies like Travelers, American International Group (AIG), and Liberty Mutual have all reported drops in sales.
Looking at the larger cultural and economic implications here… if you are a worker or employer in North Carolina, what should you make of these numbers? One implication could be that the so-called “jobless recovery” appears to be real – and could be here to stay, for some time. This doesn’t mean that certain sectors of the North Carolina economy will not recover – or that more jobs will not emerge. But it does at least imply that the economic landscape that will inform future North Carolina workers’ compensation policy will likely be very different from the landscape that dominated last decade.
According to anecdotal evidence, one of the most frustrating aspects of the “great recession” of 07-09 and its aftermath – for North Carolina employees and entrepreneurs – is the lack of certainty. In other words, no one knows how our collective political response to the recession will ultimately impact businesses and workers. Nor does anyone know when will things “level out” to the point that employers and employees can plan their mid-term hiring/working strategies.
And against this backdrop of uncertainty and low level panic, many workers find themselves unable to work as much as they had in the past due to injuries, illnesses, or other unfortunate circumstances. For those people, workers’ compensation benefits and unemployment benefits can literally be a lifeline stabilizing their finances and budget.
If you are having difficulty getting or sustaining benefits – due to an employer who won’t cooperate or an insurance company who is giving you trouble on your claim for whatever reason – get quality help developing and executing solutions by talking to a respected North Carolina workers’ compensation law firm.
More Web Resources
Bloomberg article on drop in sales
