May 13, 2025 (ORLANDO, FL)—The performance of the workers compensation system remains strong according to the 2024 metrics that the National Council on Compensation Insurance (NCCI) released today.
Workers compensation premium decreased 3% in 2024. Private carriers produced their 11th consecutive year of underwriting profitability with a Calendar Year 2024 combined ratio of 86. It is the 8th consecutive year with a combined ratio below 90 for the workers compensation insurance market.
"Workers compensation is a product where compassion and analytics work hand-in- hand—protecting and caring for employees while also leveraging data to make the entire system more effective and sustainable," said NCCI President and CEO Tracy Ryan.
"The workers compensation system continues an era of exceptional performance with strong results and a financially healthy line," said Donna Glenn, FCAS, MAAA, Chief Actuary, NCCI. "And while there are early indications of potential headwinds on the horizon, the industry is positioned well to navigate these challenges."
NCCI’s
State of the Line Report and the
State of the Line Guide include key insights:
- Workers compensation net written premium decreased 3% in 2024.
- The Calendar Year 2024 combined ratio for workers compensation is 86%, a sign of underwriting strength for the system.
- Workers compensation’s Accident Year 2024 combined ratio is 99% with prior years continuing to experience downward reserve development.
- NCCI estimates a redundant industry reserve position of $16 billion.
- Lost-time claim frequency declined by 5% in 2024, a faster pace than the long-term average decline.
- Severity grew in 2024 with increases of 6% for medical claim severity and 6% for indemnity claim severity.
New this year:
State of the Line: At a Glance—It's a concise, one-page summary that brings together key metrics and insights—all in one place.
Glenn issued the
State of the Line Report at NCCI’s
Annual Insights Symposium (AIS) 2025 on May 13 in Orlando, FL.
The
State of the Line Report and
State of the Line Guide are available now on
ncci.com.
