November 12, 2024 (BOCA RATON, FL)—The financial health of the workers compensation system, medical inflation, economic uncertainty, and the shifting workplace and workforce continue to be top concerns for industry executives, a recent survey reveals. The National Council on Compensation Insurance (NCCI) recently conducted a comprehensive survey of more than 100 workers compensation executives addressing key issues for 2025.
“Each year, our Carrier Executive Survey captures the pulse of the industry and helps us pinpoint key issues facing workers compensation stakeholders,” remarked Bill Donnell, President and CEO of NCCI. “NCCI is dedicated to staying ahead of emerging trends and equipping stakeholders with data and insights to make informed decisions for the future.”
The survey report highlights two key concerns that appear more than any others:
Financial Health of the System—Will There Be a Turn? This and other related questions are common from inquiring stakeholders. All metrics point to a healthy and strong system, as evidenced by nearly a decade of combined ratios below 90%.
Preliminary results for 2024, based on National Association of Insurance Commissioners data through midyear, suggest another strong year with a combined ratio of 90% or below. Improvements in safety and automation have contributed to nearly 20 years of frequency decline in states where NCCI provides ratemaking services. We expect this trend to continue.
Medical Inflation—Industry stakeholders consistently name medical inflation as a top concern, and this year, it is more prevalent than ever. Currently,
medical inflation and its impact on workers comp is moderate and in the range of 2.5–3.5%. Medical inflation behaves differently in workers compensation compared to the broader economy.
For more information, view
NCCI’s Focus on Top Industry Concerns. These and other important issues will be addressed at NCCI’s
Annual Insights Symposium 2025.
About NCCI
With over 100 years of experience, NCCI serves as the nation’s most comprehensive source for workers compensation data, insights, and solutions. As
The Source You Trust, NCCI's mission is to foster a healthy workers compensation system through its role as a licensed rating, advisory, and statistical organization. NCCI's thought leaders analyze workplace trends and deliver insights to empower informed decision making. Its employees are proud to embrace a culture of inclusion, diversity, and respect for one another.
