Sacramento, CA - The National Council on Compensation Insurance (NCCI) released its performance metrics for the US workers compensation system for 2021. NCCI's annual State of the Line presentation provides an exclusive review of trends, cost drivers, and significant developments shaping the workers compensation industry.

Private carrier plus state fund net written premium increased about 1% to $43 billion in 2021 (private carrier premium alone was $38B). Private carriers again posted a profitable Calendar Year 2021 combined ratio of 87. It is the fifth consecutive year with a combined ratio below 90 for the workers compensation insurance market and the eighth consecutive year of underwriting profitability.

"The strength and resilience of the workers compensation system is a point of pride for all stakeholders," said Bill Donnell, President and CEO of NCCI. "As the workforce and workplaces are changing, the industry must step up again to fulfill its noble responsibility: helping injured workers."

"Strong employment and significant wage growth are fueling workers compensation payroll increases," NCCI Chief Actuary Donna Glenn added. "We have a remarkably strong and healthy system right now."

Additional key insights in NCCI's State of the Line Report include:

- - The workers compensation line is strong and healthy.
- - WC results continue to reflect a strong financial position.
- - Lost-time claim frequency data suggests the long-term decline has continued, despite a rise in frequency in 2021. Since 2019, frequency declined slightly.
- - The 2021 changes in indemnity and medical claim severity are expected to be flat.
- - The number of COVID-19 claims declined in 2021 relative to the prior year.
- - Workers compensation reserves grew to $16 billion redundant as of year-end 2021.
- - The system saw its eighth consecutive year of underwriting profitability with a calendar year combined ratio of 87, outperforming other property-casualty lines.
- - The 2018 to 2021 loss ratios have been the lowest observed in at least 30 years
- - Net written premiums rose about 1% in 2021.
- - Between 2020 and 2021, countrywide private carrier direct written premium increased 1.9%.
- - State funds saw a larger increase in premium compared with private carriers.
- - 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 claims 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.
- -Total property and casualty net written premium for private carriers increased by approximately 9% to more than $700 billion in 2021.

Glenn issued the State of the Line Report at NCCI's Annual Insights Symposium on May 10 in Orlando, FL. The State of the Line Report and State of the Line Guide are available online.

Source: WorkCompAcademy.com

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