When a workers’ comp carrier grows fast enough to double premium yet watches losses outrun pricing discipline, the fix demands more than slogans or spreadsheets. It calls for choices that risk attrition, conversations that withstand pushback, and an operating model that ties every policy to a shared outcome.
That was the crossroads for Kinetic after expanding from safety wearables into underwriting. Growth lifted top-line momentum, but accident year loss ratios worsened even as premiums climbed. The company needed a reset that preserved speed without breaking the chassis.
why this turnaround matters
Workers’ compensation rewards precision and punishes drift. Thin margins, long-tail claims, and judicial creep compress room for error, so undisciplined expansion often shows up as adverse development months later. In that environment, profitability hinges on selection discipline and verified behavior change, not just rate.
The broader market added pressure. While industry pricing stayed soft, Kinetic pursued a positive net rate and now reports roughly 7% average increases year-to-date. That stance only works when brokers see clear value behind the ask and insureds commit to using embedded technology that reduces injuries and accelerates return-to-work.
how growth pain became a mandate
Michelle Carter entered as chief underwriting officer with a direct charge: prove that growth and profitability could advance together. The path began with clarity. The team narrowed appetite, refined selection criteria, and defined what a “great” risk looks like—measurable adoption of Kinetic’s safety tech and active participation in claims management.
From there, momentum met math. Targeted non-renewals and rate actions removed adverse performers, while underwriting guidelines set standards for utilization and engagement. Two seasoned renewal underwriters joined to create bandwidth for rigorous reviews, necessary price corrections, and clean execution—foundational moves that signaled a hard reset without abandoning growth.
resetting the playbook
Distribution shifted from transactional processing to relationship-led trading. Underwriters went phone-first with brokers, explaining the “why” behind indicated rate, service commitments, and partnership expectations. Candid conversations improved retention on aligned risks and clarified where parting ways preserved long-term value on both sides.
Inside the company, data turned into a management system. Cross-functional KPIs now span submission quality, hit ratio by segment, technology adoption, lag time to first claim action, and loss ratio by cohort. Loss ratio uplift is shared monthly at all-hands meetings, creating transparency and faster course corrections among underwriting, claims, engineering, and operations.
Results followed even in a soft market. Kinetic reports a positive net rate year-to-date with about 7% average increases and projects gross written premium growth north of 35%, driven by surgical pricing and tighter selection. Early indicators showed loss trends bending the right way, with no need to choose between top-line momentum and underwriting performance.
voices from the front line
Carter framed the mandate succinctly: “Growth and profitability can proceed in tandem—but only with disciplined selection and utilization.” On distribution, her guidance was plain: “Pick up the phone. Explain the why behind the rate. Then stand behind the service.” Those principles set the tone for every renewal and every new submission.
Operational changes reinforced behavior. Monthly all-hands sessions made loss ratio a company-wide scoreboard rather than a siloed metric. Two specialized renewal underwriters created the runway to execute non-renewals and price corrections without distracting new-business efforts, ensuring discipline scaled with volume.
Industry sentiment supported the shift. Analysts and brokers agree that technology bends the loss curve only when embedded and adopted; premiums alone do not fix outcomes. Moreover, consultative underwriting builds trust and increases acceptance of indicated rate, raising retention on the right risks while clearing out misaligned accounts.
what to do next
The playbook that worked at Kinetic provided a practical path forward for carriers facing similar pressures. Define a “great” risk with utilization thresholds and claims engagement standards, then use a prune-and-price matrix—renew, re-rate, or non-renew—based on profitability trajectory and behavior. Require documented utilization commitments for best terms, tie credits to verified actions, and guide pricing with micro-segmentation instead of broad-brush rate changes.
Execution depended on cadence and craft. Prioritize core broker partners, hold quarterly reviews rooted in loss drivers and delivered value, and standardize call scripts that explain rate logic and service commitments—followed by clear recap emails. Split roles between new-business hunters and renewal specialists, invest in coaching on consultative conversations and data storytelling, and celebrate behaviors that drive disciplined underwriting rather than sheer premium volume.
The turnaround ultimately rested on culture. Sharing KPIs across teams made performance a shared responsibility, and mentoring rising talent embedded standards that outlasted any single quarter. By aligning incentives, insisting on verified utilization, and leading with transparent conversations, Kinetic’s team reset the book while preserving momentum; the model now stood ready for thoughtful scaling and sharper accountability in the cycles ahead.
