Sidney Schultz's questions to ProAssurance Corp (PRA) leadership • Q1 2024
Question
Sidney Schultz from Raymond James inquired about the workers' compensation line, asking if the market could reach a rate inflection point in the next year or two, given ProAssurance's early recognition of severity trends amidst ongoing market-wide rate decreases.
Answer
President and CEO Edward Rand stated that an inflection point is necessary, as declining claim frequency cannot continue indefinitely while medical severity trends are becoming more meaningful and are an 'unquestionable' factor. He believes the broader market will eventually have to respond to these trends, but ProAssurance is currently focused on managing its own book of business based on its observations.