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 our latest analysis of financial indicators, trends, and broad economic markers. This highly anticipated session is unmatched in its detailed analysis of market conditions.
- Workers compensation premium increased 11% in 2022, returning to approximately the same level as four years ago, 2019.
- The calendar year combined ratio for workers compensation is 84%, a sign of underwriting profitability for the system.
- Workers compensation’s accident year combined ratio is 97% with prior years continuing to experience downward reserve development.
- The workers compensation reserve redundancy grew to $17 billion.
- Lost-time claim frequency returned to its 20-year trend, declining 4% in the past year.
- NCCI reported a notable rise in severity for 2022 with medical claim severity increasing about 5% and indemnity claim severity rising about 6% year over year. The longer-term perspective indicates this is a manageable rise.
State of the Line Report Video