Management Summary 2020

Posted Date: Current
    

NCCI's Residual Market Management Summary 2020 (PDF) is the best source for obtaining facts and figures about the workers compensation residual market plans and reinsurance pools that we service.

The COVID‐19 pandemic created a lot of uncertainty and unanticipated disruption in business operations and the economy in 2020. However, the residual market was resilient and responsive to all challenges, remaining stable and manageable, with COVID claims appearing to have limited direct impact on residual market losses and operating results. In fact, the ultimate Policy Year (PY) 2020 combined ratio is projected to be virtually unchanged from the two prior policy years, and both premium volume and market share decreased for the sixth consecutive year.

Highlights include:

  • For PY 2020, the combined ultimate written premium for all reinsurance pools serviced by NCCI is projected to be $790 million, representing a 9% decrease from PY 2019
  • The net operating results for PY 2020 are projected as an ultimate operating loss of $47 million, representing a combined ratio of 106%
  • Total 2020 premium in the workers compensation insurance plans administered by NCCI was reported at $655 million and represents a 5.3% market share
  • The residual market continues to be stable due to the effective partnership of all residual market stakeholders, including insurance carriers, regulatory agencies, and residual market administrators