Workers' Compensation Insurance in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS OD4781Revenue
$56.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
44,823
Businesses
178
Wages
$X.Xbn
Workers' Compensation Insurance in the US industry analysis
Workers' compensation insurance agencies have endured the harsh end of the price cycle through the past five years but have managed to reverse early challenges. Initially, insurers entered a phase where they lowered premiums to gain market share, resulting in declining revenues as competition intensified. Some agencies faced financial difficulties, leading to closures or buyouts by more successful firms, which increased market concentration. Premiums later rose again as dominant agencies gained more influence over prices, bringing better returns per employee. At the same time, a massive resurgence in trucking activity boosted the number of workplace deaths, exacerbating more price hikes. Investment income has also fluctuated significantly. Returns dropped when the Federal Reserve cut interest rates during the pandemic but rebounded as interest rates surged to 22-year highs. Revenue has declined at a CAGR of 1.6% to an estimated $56.7 billion over the five years through 2024 as insurers have struggled to fully recover from the pandemic's challenges. Revenue is set to climb 1.1% in 2024 alone.
Trends and Insights
- Premiums have returned to growth. Workers' compensation insurers initially faced significant price pressure, but acquisitions and closures have given dominant agencies more control over their premiums.
- Medical benefits and cash benefits are nearly evenly split. Workers' compensation insurance providers pay a similar amount for lost wages or indemnity benefits as they do medical professionals for treatment.
- Large populations create large workforces. The Southeast region and the state of California are extremely populated, which attracts industries and, by extension, workers’ compensation insurers to help protect employees and employers from a variety of dangers in the workplace.
- Clients will choose the cheaper policy. Workers' compensation insurance is fairly homogenous among providers, so streamlining operating costs to undercut competitors is critical to gaining a competitive edge in the industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.6 % over the past five years, to reach an estimated $56.7bn in 2024.
Trends and Insights
Workers' compensation insurers have overcome the harsh end of the price cycle
- Premiums fluctuate in value as workers' compensation insurance companies look to better their financial standing by lifting prices, which is eventually followed by a descent as companies begin lowering their premium rates to undercut competitors and capture market share.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Safer workplaces will mute growth but boost profit
- Workplace safety initiatives are expected to ramp up through the end of 2029, though the recent repeal of Chevron Deference may give corporations less oversight and more room to allocate resources elsewhere. Still, insurers' financial incentives to clients who prioritize safety will lead to new accident mitigation programs regardless of tightening or loosening government oversight.
Biggest companies in the Workers' Compensation Insurance in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
The Hartford Financial Services Group, Inc. | 3,667.2 | 602.3 | 16.4 | |
The Travelers Companies, Inc. | 2,477.7 | 321.9 | 13.0 | |
Zurich Insurance Group Ltd. | 2,431.5 | 316.9 | 13.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Medical benefits, Cash benefits and Investment income. Medical benefits is the largest segment of the Workers' Compensation Insurance in the US.
Trends and Insights
Cash benefits help cover missing wages
- Cash benefits offered through workers' compensation policies are payments for lost income. Also known as indemnity costs, cash benefits are usually based on a state's average weekly wage.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Property, Casualty and Direct Insurance in the US
- Workers' Compensation & Other Insurance Funds in the US
Complementors
- Life Insurance & Annuities in the US
- Health & Medical Insurance in the US
International industries
- Global Direct General Insurance Carriers
- Property, Casualty and Direct Insurance in Canada
- General Insurance in Australia
- General Insurance in New Zealand
- General Insurance in the UK
Table of Contents
About this industry
Industry definition
This industry underwrites (i.e. assumes the risk and assigns premiums for) workers’ compensation insurance, which protects businesses from liabilities related to injuries at the workplace.
What's included in this industry?
Directly underwriting workers’ compensation insurance policiesPaying medical benefitsPaying cash benefitsInvesting insurance premiumsCompanies
The Hartford Financial Services Group, Inc.The Travelers Companies, Inc.Zurich Insurance Group Ltd.Purchase this report to view all 4 major companies in this industry.
Related Terms
UNDERWRITINGCOMBINED RATIOFIXED-INCOME SECURITIESIndustry Code
NAICS 52412 - Workers' Compensation Insurance in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Premiums have returned to growth. Workers' compensation insurers initially faced significant price pressure, but acquisitions and closures have given dominant agencies more c...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Medical benefits and cash benefits are nearly evenly split. Workers' compensation insurance providers pay a similar amount for lost wages or indemnity benefits as they do med...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Large populations create large workforces. The Southeast region and the state of California are extremely populated, which attracts industries and, by extension, workers’ com...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Clients will choose the cheaper policy. Workers' compensation insurance is fairly homogenous among providers, so streamlining operating costs to undercut competitors is criti...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Travelers is bringing technological advancement to the industry. The second-largest workers' comp insurance company has recently made key purchases and partnerships that are ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of The Hartford Financial Services Group, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Travelers Companies, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Zurich Insurance Group Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for The Hartford Financial Services Group, Inc., and factors influencing its performance in the industry
- Description and key data for The Travelers Companies, Inc., and factors influencing its performance in the industry
- Description and key data for Zurich Insurance Group Ltd., and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Workers’ compensation insurers need to navigate heavy government regulation. Insurance agencies need to be accredited by the NAIC and will need to be familiar with state laws...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Safety measures are pushing profit upwards. Thanks to employee protection protocols, workers' compensation insurance agencies have had to pay out fewer claims. Workers' compe...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Workers' Compensation Insurance in the US industry in United States in 2024?
The market size of the Workers' Compensation Insurance in the US industry in United States is $56.7bn in 2024.
How many businesses are there in the Workers' Compensation Insurance in the US industry in 2024?
There are 178 businesses in the Workers' Compensation Insurance in the US industry in United States, which has declined at a CAGR of 2.1 % between 2019 and 2024.
Has the Workers' Compensation Insurance in the US industry in United States grown or declined over the past 5 years?
The market size of the Workers' Compensation Insurance in the US industry in United States has been declining at a CAGR of 1.6 % between 2019 and 2024.
What is the forecast growth of the Workers' Compensation Insurance in the US industry in United States over the next 5 years?
Over the next five years, the Workers' Compensation Insurance in the US industry in United States is expected to grow.
What are the biggest companies in the Workers' Compensation Insurance in the US market in United States?
The biggest companies operating in the Workers' Compensation Insurance market in United States are The Hartford Financial Services Group, Inc., The Travelers Companies, Inc. and Zurich Insurance Group Ltd.
What does the Workers' Compensation Insurance in the US in United States include?
Directly underwriting workers’ compensation insurance policies and Paying medical benefits are part of the Workers' Compensation Insurance in the US industry.
Which companies have the highest market share in the Workers' Compensation Insurance in the US in United States?
The company holding the most market share in United States is The Hartford Financial Services Group, Inc..
How competitive is the Workers' Compensation Insurance in the US industry in United States?
The level of competition is high and increasing in the Workers' Compensation Insurance in the US industry in United States.
