This type of insurance is typically required by law and can help cover the cost of medical expenses and lost wages for employees who are injured on the job.
Key Considerations
Workers’ compensation is a form of employer insurance coverage that pays benefits to workers who are injured or become disabled as a result of their job. By accepting workers’ compensation benefits, the employee waives the right to sue their employer for damages.The compensation may include partial salary repayment and coverage of medical costs. Workers’ comp is not the same as unemployment benefits or disability insurance.
Applicability
In the United States, workers’ compensation is handled primarily by the individual states. The required benefits vary greatly state by state.
*Texas is the only state that does not require employers to maintain workers’ compensation insurance.
AM Best recently shifted its outlook on the global reinsurance market to positive for the first time in history, reflecting improved market conditions and potential profitability. The last significant change was in 2018 when the outlook was upgraded to stable, with no record of a previous positive outlook. This notable change, coinciding with AM Best's 125th anniversary, highlights the enhanced return potential driven by higher pricing and stricter coverage terms in the reinsurance sector, benefiting both traditional reinsurance and insurance-linked securities (ILS) markets.
Artemis Update: AM Best has upgraded its outlook on the global reinsurance sector from stable to positive for the first time in over a decade, highlighting robust profit margins and improved underwriting conditions. The rating agency now views insurance-linked securities (ILS) as strategic partners rather than competitors, emphasizing their role in supporting traditional reinsurers. Despite a deceleration in reinsurance pricing, AM Best notes that underwriting discipline and healthy profit margins are expected to be maintained.
Exciting news in the world of finance and risk management! May is set to break records as the biggest month of catastrophe bond issuance ever. According to a recent article from Artemis, the market is experiencing unprecedented growth, highlighting the increasing demand for innovative risk transfer solutions.
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