Insurers repay workers’ comp profits

Excess workers’ compensation profits paid by insurers to Florida businesses so far this year total some $100mn, more than three times higher than the amount paid in 2008, according to the state’s Office of Insurance Regulation. Hartford Financial Services has become the latest insurer to return excess workers’ comp profits to Florida insureds. The insurer is to issue refunds or credits totalling $48.2mn for excess profits it earned on its workers’ comp policies for accident years 2004, 2005 and 2006. Hartford’s refund will bring the total amount of refunded excess workers’ comp profits for all of the business line’s writers in Florida to more than $98.8mn so far this year, according to Florida Insurance Commissioner Kevin McCarty. “During these tough economic times, Florida businesses will receive a very significant and important return of premium,” Commissioner McCarty said. “Companies certainly are entitled to earn reasonable profits; but the excess profit law protects Florida business owners from paying more than what is actuarially justified.”