2022 State of the Line Guide

Posted Date: May 10, 2022  


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 insights, 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 NCCI’s 2022 State of the Line presentation highlighted:

  • The workers compensation line is strong and healthy.
  • The system saw its eighth consecutive year of underwriting profitability with a calendar year combined ratio of 87, outperforming other property-casualty lines.
  • Net written premiums rose about one percent in 2021.
  • Lost-time claim frequency data suggests the long-term decline continues, despite a rise in frequency in 2021. Since 2019, frequency has declined slightly.
  • There is no change expected in medical and indemnity claim severity in 2021.
  • There are potential challenges ahead as medical costs could experience inflationary pressure.
  • Workers compensation reserves are robust. Reserves grew to $16 billion redundant as of year-end 2021.

We hope you find the 2022 State of the Line Guide both a beneficial and informative resource.

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