At its Annual Issues symposium held last week, NCCI offered it’s State of the Line, an overview of the health of the work comp industry. The press release NCCI offers a summary:Calm Now … But Turbulence Ahead Outlook for Workers Compensation Industry. For more detail, see Chief Actuary Kathy Antonello’s presentation slides (PDF) reviewing workers compensation trends, cost drivers, and the significant new developments shaping the industry. And for other presentations and reports, see News from the Annual Issues Symposium 2015.
Some of the report highlights:
- The workers compensation calendar year combined ratio for private carriers was 98 in 2014, a four-point decrease from 2013 and a 17-point decline since 2011
- Total market net written premium increased by approximately 6% to $44.2 billion, driven primarily by an increase in payroll
- Claim frequency declined 2% in NCCI states
- Claim severity increased slightly more than inflation measures for indemnity and medical costs
- While workers compensation premium volume continues to increase, construction and manufacturing employment totals remain well below prerecession levels–restraining even higher premium growth rates
- A continuing low-interest-rate environment threatens investment results over the long term
- Last year marked the fourth consecutive year of workers compensation residual market premium growth. Premiums grew by approximately 7% in 2014, while the average market share in the residual market held steady at 8%
In addition, NCCI President Stephen Klingel added commentary on market turbulence:
“From ongoing threats to exclusive remedy, to the risk of benefit increases without appropriate rate adjustments, to the rapidly changing nature of our workforce and workplaces, our industry is being tried on all sides today. While I am confident that we will work our way through these challenges, it is important to be realistic about current conditions and to recognize that the current positive results may not last.”
For the next best thing to being at the symposium, it’s worth checking out Joe Paduda’s running commentary on the various NCCI sessions…
First up at NCCI – Work comp is looking better…
The State of the Workers’ Comp Line – 2015 ed.
NCCI’s PM sessions – hard core research geeks only
Another great source of conference blogging is Mark Walls at Safety National – who blogged not just this NCCI symposium, but many other industry events and reports too — if you don’t have Conference Chronicles bookmarked, you should!
Here are reports from some other media outlets
Stephanie Goldberg, Business Insurance
Turbulent times ahead for workers compensation
Andrews G. Simpson, Claims Journal
Workers’ Compensation Results Improved in 2014 But Industry Anxious About What’s Ahead
Tags: industry results, NCCI
