Workers’ comp keeps making money even as the pricing slides. AM Best analysts say the line has delivered solid profits for a decade. Premiums dropped, but companies figured out better ways to manage costs.
“Rates have been declining since Q2 2015,” said Gordon McLean, senior financial analyst at AM Best. He pointed out the dips and rebounds, yet the consistency of income and reserve releases stands out. It looks steady, almost stubbornly so.
We’ve had some periods where rates have come up and moved back down again. But despite the declining rate environment over a 10-year period, the line remains really robust, profitable, solidly consistent levels of income and favorable reserve releases over a long period of time.
Gordon McLean, senior financial analyst at AM Best
EverPeak Insurance, a Pinnacol Assurance subsidiary, picked up Method Insurance, a managing general agent that serves nearly every type of employer.
The deal isn’t just a headline purchase. According to the statement, it reflects the shifting demands of brokers who want a single, seamless solution—something that handles unique risks and multistate operations without messy workarounds.
Pinnacol’s boss John O’Donnell framed it as part of a larger push.
With the investments we have made in platform technology and workers’ comp solutions, we are creating a best-in-class product that makes it easier than ever for brokers to serve their clients and grow their business
John O’Donnell, president and chief executive officer of Pinnacol
EverPeak already has Attune, its digital platform aimed at brokers working with small businesses. Method now bolsters that, widening the reach to employers nationwide. Think more channels, bigger range, smoother access.
Over time, EverPeak says the move should unlock better services, sharper tech, and stronger partnerships. Brokers end up with more options, employers get coverage that fits, and the infrastructure scales in sync with demand.
We think it shows where workers’ comp is heading. Old product, new tactics. Profitable line, national play. Maybe that’s the real story here.
