California is already showing signs of tightening, with rate increases in the flat to +5% range. New York, where state-mandated rate decreases have compressed profitability, is seeing some carriers reduce capacity or exit certain classes entirely. Massachusetts, despite not being a large workers’ comp market, has driven rates so low that “carriers are saying, we can’t attain profitability, so we’re not going to write in that state,” Palmer said. Illinois is also trending toward deterioration, with rising loss costs and political pressure on pricing.