2023 State of the Line Guide
Posted Date: May 9, 2023
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 2023 State of the Line presentation highlighted:
- Workers compensation net written premium increased 11% in 2022, returning to approximately the same level as 2019.
- The calendar year combined ratio for workers compensation is 84%, a sign of underwriting profitability for the system.
- Workers compensation’s accident year combined ratio is 97% with prior years continuing to experience downward reserve development.
- The workers compensation reserve redundancy grew to $17 billion.
- Lost-time claim frequency returned to its 20-year trend, declining 4% in the past year.
- NCCI reported a notable rise in severity for 2022 with medical claim severity increasing about 5% and indemnity claim severity rising about 6% year over year. The longer-term perspective indicates this is a manageable rise.
We hope you find the 2023 State of the Line Guide both a beneficial and informative resource.