The 25 insurers that sell the most workers’ comp insurance in the U.S. appear in the list below. The source of the data is a list published by the National Association of Insurance Commissioners (NAIC) in March 2022. The NAIC is an advisory organization that sets standards and provides regulatory advice to state insurance departments.
How Workers’ Comp Premiums Work
The insurers on the top 25 list appear in descending order based on direct written premiums generated in 2021. The term “direct written premium” means all policy premiums collected by an insurer without considering any premium ceded to reinsurance companies. The written premium is the amount a policyholder is obligated to pay for a policy. Workers’ compensation premiums are paid in advance, so the written premium is the amount the insured has paid upfront and before any claims have been paid out. Written premium differs from earned premium, which is the amount the insured has paid for the expired portion of the policy—when the insurer is no longer accepting any risk for the policyholder. The earned premium is based on actual payrolls, so it cannot be calculated until a final audit is performed. Insurers’workers’ compensation premiums can fluctuate from year to year. Some insurers may lose market share due to competition or declining premiums. Others may deliberately write fewer policies. For instance, an insurer may decide to exit an unprofitable line of coverage or sell a book of business to another insurer.
The Top 25 Workers’ Compensation Insurers
The top 25 list also includes specialty companies such as AmTrust Financial, Arch, and Markel. AmTrust focuses on insurance solutions for small businesses, especially workers’ comp insurance. Markel specializes in market niches such as farming,livestock, education, and sports. It also offers a small business program that includes coverages including workers’ compensation andbusiness owners. Arch is a multinational company that provides property, casualty, and specialty insurance for corporations, professional firms, and financial institutions across the U.S.
Workers’ Comp Specialists
Five of the largest workers’ compensation insurers are state funds: the New York State Fund, the State Compensation Fund of California, Pinnacol Assurance (the state fund in Colorado), Texas Mutual, and SAIF (Oregon’s state fund). All compete for business with private insurers. A few insurers on the list are workers’ compensation specialists but aren’t state funds. These include Employers Group and ICW Group. Employers Group only offers workers’ compensation coverage. It operates in all 50 states and focuses on small businesses. ICW Group sells only two commercial insurance coverages: workers’ compensation and earthquake.
