Residual Market Management Summary 2018

Posted Date: June 20, 2019
    

The NCCI Residual Market Management Summary 2018 (PDF) is the best source for obtaining facts and figures about the workers compensation residual market plans and reinsurance pools that NCCI services.

As of Year‐End 2018, the residual market remains stable and effectively managed. The latest five policy years reflect relative consistency in operating results and performance, with a continuing gradual decrease in premium volume and market share.

Highlights include:

  • Ultimate residual market written premium for Policy Year (PY) 2018 is projected at $1.025 billion
  • The residual market share of the overall workers compensation market is 7.2% in 2018
  • NCCI is preliminarily projecting a residual market operating loss of $70 million for PY 2018
  • Aggregated operating results for Policy Years 2014–2018 represent a combined ratio of 101%
  • Hazard Groups F and G comprise 46% of all residual market exposure, representing a significant concentration of high-hazard risks compared to the voluntary market
  • While there is potential volatility, the residual market operating results are relatively consistent, reflecting high-quality services provided by servicing carriers and residual market administrators