NCCI releases 2021 performance metrics for workers' comp system

NCCI releases 2021 performance metrics for workers' comp system | Insurance Business America

NCCI releases 2021 performance metrics for workers' comp system

The National Council on Compensation Insurance (NCCI), an organization that seeks to foster a healthy workers’ compensation system, has announced the release of its performance metrics for the US workers’ compensation system in 2021.

Private carrier plus state fund net written premium increased about 1% to $43 billion in 2021. Private carrier premium alone was $38 billion. Private carriers posted a profitable combined ratio of 87% for the year. 2021 was 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,” said Donna Glenn, NCCI chief actuary. “We have a remarkably strong and healthy system right now.”

Read next: Wins and losses in the workers’ comp space

Additional findings of the NCCI’s report include:

  • Lost-time claim frequency data suggests the long-term decline is continuing, despite a rise in frequency in 2021. Since 2019, frequency has declined slightly
  • 2021 changes in indemnity and medical claim severity are expected to be flat
  • The number of COVID-19 claims declined in 2021 from the prior year
  • Workers’ compensation reserves grew to $16 billion redundant as of year-end 2021