Judge Partially Blocks FTC Ban on Noncompetes

A federal judge in Texas has partially blocked the Federal Trade Commission (FTC)'s rule banning noncompete agreements, which prevent workers from joining rival companies or starting competing businesses. Judge Ada Brown's decision delays the implementation of the rule for the plaintiffs, which include Ryan LLC and several business groups such as the U.S. Chamber of Commerce. The judge argued that the FTC lacks the authority to enact such a broad ban and indicated that the plaintiffs are likely to succeed on the merits of their case. The ruling does not apply nationwide, and a final decision is expected by August 30, just before the rule was set to take effect. Read more here.

Workers Comp: The Most Profitable Major Line of Business

The workers' compensation insurance market remains highly profitable, with a 2023 combined ratio of 86, well below the break-even point of 100. Economic growth and inflation have contributed to premium growth, offsetting loss cost decreases. Despite facing headwinds from medical inflation and increased attorney involvement in claims, the market benefits from a positive economy, wage growth, and a stable job market. Agents face competition due to over-saturation, but the market remains favorable with declining rates and reasonable coverage terms. Long-term trends include improving claim frequency, increasing claim severity, and greater use of analytics and technology. Read more here.

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