2016 Annual Report

Posted Date: May 19, 2017

A Letter From the President and CEO

NCCI, much like the workers compensation system itself, has been around a long time—nearly 100 years. And we wrapped up a successful year in 2016, just as in years past—with a long list of accomplishments of which we certainly feel proud. I fully expect 2017 will be similar in that regard.

But even so, things are changing. Technology is moving us ever more quickly down the path. The regulatory landscape is shifting constantly. Our environment—particularly the makeup of the US workforce—is evolving right before our eyes. Clearly, things are not the same as they were 100 years ago. And that's a good thing.

Change is good because it means we are evolving and adapting. Consider the standards for safety in US workplaces today compared to the 1800s, early 1900s, or even the 1950s—not that long ago. The workers compensation system can be proud of the effect it's had in protecting workers and enabling US businesses to succeed.

Change is inevitable, and those who choose to ignore or resist it get left behind. They become irrelevant. And that is something that the workers compensation system—and NCCI as a proud system partner—have avoided. Despite a world of change and evolution, we remain highly relevant, perhaps more so now than ever.

As I prepared for my yearly address at NCCI's Annual Issues Symposium (AIS), I spent a lot of time thinking about the importance of being relevant. I pondered the lessons learned by watching big, proud organizations suddenly become irrelevant because they did not fully recognize the impact that change would have on their seemingly unassailable position in the market.

This led me to the selection of this year's "word"—Adapting. As a system, we have survived and thrived because we adapted to major shifts in our environment. We originated at a time when agriculture was still the leading industry. We adapted to a big shift toward manufacturing in the 1950s. We remain relevant today, at a time when service industry jobs dominate payrolls. And the evolution won't stop there. From driverless vehicles to the widespread use of robotics, the workplace of tomorrow will be very different from today's.

At NCCI, we are adapting to remain relevant as the leader in providing data, insights, tools, and services to foster a healthy workers compensation system. We are adapting our research, our technology, and even our internal operating model to be more agile and to enable swift delivery of value to our stakeholders.

Still, with all this talk of change and adaptation, I would be remiss if I didn't emphasize what remains the same: our commitment to providing accurate, objective, and timely tools and services to you, our constituents. We've been there for you in the past, and we will be there in the future as the source you trust.

Change can be a wild ride, but when you are prepared for it, the ride can be thrilling. I'm in my second year on this ride and very happy to share it with all of you.