3 Ways Agents Can Offer the Best Advice to Workers Comp Clients

• By: Olivia Overman
• July 14, 2025

“The workers compensation market has remained in a prolonged soft cycle since at least 2012, and current indicators suggest that trend will continue,” says Mark Gromek, chief marketing and underwriting officer, Builders Insurance. “Similar to other carriers, our workers comp book continues to outperform expectations, with claims frequency remaining flat or declining for more than 10 years.”

At its 2025 annual Insights Symposium, the National Council on Compensation Insurance (NCCI) released updated data including a combined ratio of 86% for 2024, providing a sign of continued underwriting profitability for the system.

A proactive safety culture has been a key factor in making the workers comp insurance market a rare bright spot in an otherwise tough insurance landscape—but how long can it last?

“It is well known to carriers that workers comp has been quite profitable and therefore a very desirable line for carriers to grow,” says Mort Large, workers comp line of business lead, Nationwide. “Multi-line carriers over the years, in recognition of the profitability of workers comp, have been more assertive in wanting to write all lines when quoting, recognizing that a multi-line book of overall accounts with workers comp tends to be more profitable than a multi-line book without workers comp.”

Yet, “increased competition for workers comp business, both among monoline carriers as well as multi-line carriers, has the potential over time to reduce margins,” Large says.  

As the soft workers comp market continues, here are three risk management tips agents can provide to their clients to get the most out of their coverage:

1) Enhance workplace safety programs. By keeping up to date with safety innovation and technology, clients can work towards a continually safer work environment. Further, “by active safety management, clients can also lower their claims costs and benefit from favorable premium rates,” says Tara Sites, vice president small commercial product, Liberty Mutual. “Additionally, openly discuss the importance of mental health and offer wellness programs to their employees.”

2) Implement return-to-work programs. “These programs are not only critical to support employees following an injury, but they can save the employer in workers comp costs as well,” Sites says.

In their role as a trusted advisor, independent agents “should ensure they really understand their clients’ operations and exposures,” Sites says. “This will help ensure proper classification and mitigate any surprises at the time of the premium audit and may result in more favorable pricing.”

3) Report claims quickly. Even when the incident appears to be minor, “agents should ensure that their clients know the importance of reporting a claim quickly,” Sites says.

“If agents can help their insureds develop a well-oiled safety program that includes a workers comp component, they help reduce the insured’s loss history and to prevent associated employment issues such as medical leave disputes and other employment practices claims,” says Nancy Germond, Big “I” executive director of risk management and education.  

In a market where there is high competition among carriers, understanding “carrier appetite and knowing the industry segments your carriers excel in is key,” says Rob Suarez, vice president, head of middle market underwriting, Nationwide. “This allows you to target the right markets and anticipate underwriter questions, making your submissions more compelling.”

Ensure clients are aware of trends impacting the market and “stay informed of emerging risks relevant to their specific industries,” Suarez says. “Sharing educational resources such as blog posts, videos and newsletters can help them make informed decisions to protect their employees and the company.”

Further,recent data from The Institute of WorkComp Professionals  found that about 75% of work company audits had errors “that result in overcharges.” “Agents should remind their clients that estimated payroll is just that, an estimate,” Germond says. “The agent should query their clients at least semi-annually to update payroll figures.”

“Assisting clients with these issues can mean a stronger bond with your clients, since many agents simply file the audit assuming it’s correct,” she adds.

Additionally, “developing a strong relationship between agent, client and underwriter will underpin a long-term, sustainable risk management plan to endure any market cycle—hard or soft—and pay richer dividends than short-term cost savings,” Suarez says. 

In a fluctuating economic environment, changes can have an impact on the workers comp market, influencing claim frequency and severity, premium pricing and insurer profitability.

“The National Council on Compensation Insurance (NCCI) keeps a watchful eye on things like the economy, medical inflation, shifts in medical utilization patterns and large losses, and how these trends can vary by industry,” says Donna Glenn, chief actuary, NCCI. “Continued long-term declines in frequency, moderating severity and growing wages have also been trends we are watching that can have impacts on workers comp.”

As the market changes, the NCCI’s Learning Center is a useful resource specifically tailored for agents and brokers.

On May 12, President Donald Trump signed an executive order entitled “Delivering Most-Favored Nation Prescription Drug Pricing to American Patients,” instructing the Secretary of Health and Human Services to impose most-favored nation (MFN) pricing through regulations on drug manufacturers that do not voluntarily adopt MFN pricing and to take other steps to reduce the costs of drugs for U.S. consumers. Implementation of the order faces significant legal and political hurdles. The implications for the workers comp market due to Medicare drug price negotiations has yet to be determined.

Olivia Overman is IA content editor.