2014 Annual Report

Posted Date: August 15, 2015
    
 

Overview

Our industry enjoyed another positive year of results in 2014.

In fact, 2014 was a good year for both the property/casualty (P/C) industry and the workers compensation line of business. More specifically:

  • The workers compensation line posted its first underwriting gain since 2006
  • Workers compensation lost-time claim frequency continued its long-term decline, partially offsetting observed modest increases in claim severities
  • The P/C industry remained well capitalized

At NCCI, we, too, enjoyed a solid year of results. We met or exceeded all of our corporate goals for the year. And, for a second straight year, we were able to realize an exceptional result by achieving a 0.0% difference between filed and approved loss costs in NCCI states.

So what does a good year for both the industry and NCCI mean for future results?

While we would like to be optimistic about continuing good results for our industry, years of experience have proven that ours is a cyclical business. Unfortunately, warning signs are already on the horizon.

Even now, we are seeing troubling new developments, such as:

  • A series of press reports decrying perceived imbalances in the workers comp system
  • Several ongoing state legal challenges to exclusive remedy provisions
  • A rapidly evolving workplace that is challenging traditional notions of defining who is an employee and what/where is a proper workplace
  • The risk of calls for increased benefits without related cost adjustments

In short, we are seeing too many significant challenges to anticipate anything other than bumpy times ahead.

That’s to be expected. And while we cannot always avoid the negative consequences caused by external forces, we can be aware and prepared for how our industry will respond and react. We’ve been here before, and we will successfully work our way through any new challenges.

As always, we appreciate your feedback and partnership. We encourage you to visit ncci.com for our in-depth workers compensation industry analysis and frequent updates on NCCI activities. We will do our best to surpass your expectations for a successful 2014.

NCCI Mission

To foster a healthy workers compensation system by providing high-quality information and analytical services that result in:

  • Adequate loss costs/rates
  • Objective reform evaluation
  • Self-funded residual markets
  • Tangible value for our stakeholders