The workers’ compensation market has struggled with growth and profitability, but the NCCI says 2014 results mark a departure.
The struggling workers’ compensation market has hit a benchmark it hasn’t seen in eight years.
According to data from the National Council on Compensation Insurance, workers’ comp premiums are expected to grow 7% this year to $39.3 billion, marking the first signs of profitability since 2006.
In fact, this year’s growth projections outstrip both the last two years—workers’ comp premiums grew just 4.5% in 2012 and 2013. And private comp carriers have also enjoyed success, with an aggregate combined ratio of 96% in 2014.
That’s compared to a combined ratio for private comp insurers of 101% last year, falling slowing since peaking at 115% in 2010 and 2011.
The Boca Raton, Florida-based ratemaking agency also attributed the success better accident rates among employers.
“The expected improvement in the combined ratio is derived from a reduction in losses as well as previously discussed protected increase in premium,” the NCCI said in their report.
The group also stressed that investment and operating gains have grown for private workers’ comp carriers.
