Posted Date: May 14, 2019  


NCCI’s annual State of the Line presentation provides an exclusive review of trends, cost drivers, and significant developments shaping the workers compensation (WC) industry. This Guide provides a slide-by-slide examination of the key takeaways, data sources, and formulas underlying the State of the Line presentation.

As you review the information contained in this Guide, it may be useful to keep in mind the following market indicators and trends that were highlighted in NCCI’s 2019 State of the Line presentation:

  • The workers compensation Calendar Year 2018 combined ratio for private carriers was 83%. This is the fifth consecutive year that the workers compensation line of business has posted an underwriting gain.
  • NCCI estimates that, as of year-end 2018, the overall reserve position for private carriers is a $5 billion redundancy. A redundant workers compensation reserve position has not been observed in at least 25 years.
  • Average lost-time claim frequency across NCCI states declined by 1% in 2018, on a preliminary basis.
  • In NCCI states, the preliminary 2018 average indemnity accident year claim severity increased by 3% relative to the corresponding 2017 value. Medical lost-time claim severity increased by 1%.
  • The workers compensation Residual Market Pool premium volume was approximately $1 billion during 2018, representing a residual market share of about 7%.

We hope you find the 2019 State of the Line Guide both a beneficial and informative resource.

P&C Results

Net Written Premium Growth

Key Takeaways

  • Total property & casualty (P&C) net written premium for private carriers increased by 10.6% to almost $612 billion in 2018
  • Contributing to the growth in premium is the termination of quota-share agreements with offshore affiliates, partly due to the BEAT provision introduced in the Tax Cuts and Jobs Act of 2017


The net written premium in this slide provides a measure of the size of each major line of business in the P&C insurance industry.


  • National Association of Insurance Commissioners’ (NAIC’s) Annual Statement data for individual carriers prior to consolidation of affiliated carriers
  • Insurance Expense Exhibit Part II—Allocation to Lines of Business Net of Reinsurance

The value for the most recent year is preliminary because additional data submissions may still be received by the NAIC.

Net Combined Ratio