BOCA RATON, Fla., May 12, 2020 /PRNewswire/ -- The National Council on Compensation Insurance (NCCI) held its Annual Issues Symposium today (AIS Virtual). The event—themed "A New Decade In Sight"—featured NCCI's chief actuary, Donna Glenn, FCAS, MAAA, who delivered the company's highly anticipated State of the Line Report. NCCI's State of the Line Report provided a detailed description of the 2019 workers compensation industry results, market trends, and the impact of the pandemic.
"The workers compensation system faces significant uncertainty because of the COVID-19 pandemic and resulting economic fallout," Glenn said. "COVID-19 is a shock to the industry, impacting almost every aspect of workers compensation." Nevertheless, NCCI's chief actuary said she is confident the system will respond effectively.
In the presentation, Glenn said that total workers compensation premium is expected to decline going forward as unemployment rises, with varying impacts by industry. As rules continue to change with respect to compensability, these changes could put upward pressure on system costs.
As presented in this year's State of the Line Report, the Calendar-Year 2019 workers compensation combined ratio was 85% for private carriers. This is the sixth consecutive year that the workers compensation line of business posted an underwriting gain.
"The workers compensation industry had another good year in 2019," Glenn said. "Declining claim frequency for the year, a strong industry reserve position, and favorable metrics in the residual market characterize the health of this line of business. I believe the line is well positioned to weather the challenges ahead."
On an accident-year basis, the industry-reported 2019 workers compensation combined ratio was 99%. NCCI expects the 2019 accident year's combined ratio to develop quite favorably over time.
Other market indicators and trends highlighted in NCCI's 2020 State of the Line Report included the following:
The official AIS Virtual hashtag is #ncciAIS.
Founded in 1923, the mission of the National Council on Compensation Insurance (NCCI) is to foster a healthy workers compensation system. In pursuit of this mission, NCCI gathers data, analyzes industry trends, and prepares objective insurance rate and loss cost recommendations. These activities—together with research, analytical services and tools, and an overall commitment to excellence—have positioned NCCI as the trusted source for workers compensation information. To learn more about NCCI, please visit ncci.com.
Contact: Cristine Pike