2020 State of the Line Guide

Posted Date: May 12, 2020  


Introduction

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 State of the Line 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 2020 State of the Line presentation:

  • The workers compensation Calendar Year 2019 combined ratio for private carriers was 85%. This is the sixth consecutive year that the workers compensation line of business has posted an underwriting gain.
  • NCCI estimates that, as of year-end 2019, the overall reserve position for private carriers is a $10 billion redundancy.
  • Average lost-time claim frequency across NCCI states declined by 4% in 2019, on a preliminary basis.
  • In NCCI states, the preliminary Accident Year 2019 average indemnity claim severity increased by 4% relative to the corresponding 2018 value. Medical lost-time claim severity increased by 3%.
  • The workers compensation Residual Market Pool premium volume was approximately $1 billion during 2019, representing a residual market share of about 7%.

We hope you find the 2020 State of the Line Guide both a beneficial and informative resource.

WC Results

Combined Ratio