NCCI Reports on Worker’s Comp State of the Line Findings

May 21, 2018

During last week’s National Council on Compensation Insurance’s Annual Issues Symposium (AIS) — The Future@Work held in Orlando, Fla., NCCI’s Chief Actuary Kathy Antonello, delivered the State of the Line Report, providing the audience with a detailed description of 2017 industry results, market indicators and trends.

The workers’ compensation Calendar Year 2017 combined ratio for private carriers totaled 89 percent. This is the fourth consecutive year that the workers’ compensation line of business has posted an underwriting gain. Total market net written premium volume declined slightly in 2017 to $45 billion.

“The Calendar Year 2017 combined ratio of 89 brought unprecedented underwriting gains to the workers compensation industry,” said Antonello. “The underlying loss ratio of 49 was the major contributor and a historically low watermark. It’s clear that private carriers are supporting conscientious underwriting while interest rates remain low.”

On an accident-year basis, the industry-reported 2017 workers’ compensation combined ratio was 99 percent. NCCI expects this accident year’s combined ratio to develop favorably over time.

Other market indicators and trends highlighted in NCCI’s 2018 State of the Line Report included the following:

  • The overall reserve position for private carriers improved in 2017. NCCI estimates the Year-End 2017 reserve position to be a $1 billion deficiency—down from $5 billion in 2016.
  • Average lost-time claim frequency across NCCI states declined by 6 percent in 2017, on a preliminary basis. A similar percentage decline was observed in 2016.
  • In NCCI states, the preliminary 2017 average indemnity and medical accident-year claim severity both increased by 4 percent relative to their corresponding 2016 values.
  • The workers compensation Residual Market Pool premium volume declined to approximately $1 billion during 2017, while the average residual market share remained stable at 8 percent.

For more information about NCCI’s State of the Line Report, please visit or contact us at

Source: NCCI

Was this article valuable?

Here are more articles you may enjoy.