State of the Line Report
Donna Glenn, FCAS, MAAA |
Chief Actuary, NCCI
State of the Line provided an exclusive review of the workers compensation system. Donna delivered NCCI’s latest analysis of financial indicators, trends, and broad economic markers, including an update on the impact of COVID-19 on the industry.
State of the Line Key Insights
- The workers compensation line is strong and healthy.
- The system saw its eighth consecutive year of underwriting profitability with a calendar year combined ratio of 87, outperforming other property-casualty lines.
- Net written premiums rose about 1% in 2021.
- Lost-time claim frequency data suggests the long-term decline continues, despite a rise in frequency in 2021. Since 2019, frequency has declined slightly.
- There is no change expected in medical and indemnity claims severity in 2021.
- There are potential challenges ahead as medical costs could experience inflationary pressure.
- Workers compensation reserves are robust. Reserves grew to $16 billion redundant as of year-end 2021.
COVID-19 Update Key Insights
- The number of COVID-19 claims declined in 2021 with indemnity-only claims making up more than 50% of those claims.
- Most COVID claims continue to be small. However, claims of more than $100,000 account for 1.2% of claims and 66% of losses. Nearly half of the most complex claims—those of more than $500,000—involved workers who died.
- Healthcare workers remain the most impacted by COVID-19 even as the number of impacted workers in nursing/convalescent homes declined substantially in 2021.
State of the Line Report Video