Workers Comp April Rates Up 6%

May 7, 2013

My mortgage company has been calling me lately to tell me that my current mortgage rate is above 5% and it can be lowered to the 3% range.  Why would they want to lower their own rates? They know that other mortgage brokers are calling me every day to tell me to refinance with them for lower rates and they know that if they want to keep my business, they better offer me lower rates as well and beat their competitors at refinancing, even if it means lower interest payments for them.

If you are a workers compensation broker, you are in a similar situation.  

You want to help your clients, but you are already busy with renewals, claims, generating new business, and lots of other things to help your clients.

In today’s Business Insurance, a report from MarketScout shows that workers compensation premiums are leading the rate increases with a 6% increase in April.  Of course April is one of the leading renewal periods for workers compensation premiums.

What does this mean to your clients and prospects?  They are hurting.  Many of them are not doing any better.  Their payrolls are still down, yet their workers comp premiums are shooting up.  On top of this, come October 1st, not only will the hardening market be affecting New Yorkers, the new split point change will drive many insureds’ premiums even higher.

You should be looking for a systematic approach that combs through all of your clients’ workers compensation premiums as far back as 10 years to recover errors and overcharges for them from the errors made by insurance companies.  You and your clients can be doing everything right.  These errors are from the insurance companies.  If an in-depth audit has not been performed within the past 2 years by a specialist, then there has never been a better time to help your clients.

Best of all, unlike my mortgage company, you don’t have to sacrifice any commission loss.  You will only create a new revenue stream for your agency with our workers compensation premium recovery program.