2021 State of the Line Guide
Posted Date: May 11, 2021
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 2021 State of the Line presentation:
- The workers compensation Calendar Year 2020 combined ratio for private carriers was 87%. This is the seventh consecutive year that the workers compensation line of business has posted an underwriting gain.
- NCCI estimates that, as of year-end 2020, the overall reserve position for private carriers is a $14 billion redundancy.
- Average lost-time claim frequency across NCCI states declined by 7% in 2020, on a preliminary basis.
- In NCCI states, the preliminary Accident Year 2020 average indemnity claim severity increased by 3% relative to the corresponding 2019 value. Medical lost-time claim severity is expected to change within –2% to +2%.
- The workers compensation Residual Market Pool premium volume was approximately $800 million during 2020, representing a residual market share of about 6.5%.
We hope you find the 2021 State of the Line Guide both a beneficial and informative resource.