NCCI Workers Comp Statistic
One workers comp statistic stood out the August 3rd NCCI Virginia State Advisory Forum. Actually, it exceeded even my positive outlook for the Workers Compensation market health.
The Combined Ratio performed even better than last year in the overall market. Last year the ratio pegged at 94%. What does this mean? The formula consists of three main variables:
Losses + Expenses / Earned Premium
The current workers comp statistic – Combined Ratio came in at 85% this year. The Combined Ratio measures a market’s total efficiency. Investment income by carriers is not counted in the Combined Ratio.
According to NCCI,, this was the best Combined Ratio in 50 years. Does this mean that carriers are making a 15% profit off all written premium – not exactly, but the more the number decreases, the healthier the market becomes overall.
I marked a few more pages in the presentation. (You may want to download the PDF from the first link in this article.) They were:
- Slide 20 – Changes in Medical Lost-Time – Claim Severity by Component. The utilization number has decreased to an almost no growth figure compared to 20 years ago.
- Slide 32 – All states are reducing Loss Costs except Virginia Hawaii and South Carolina
- Slide 33 – North Carolina North Carolina reduced Loss Cost on 4/1/17 by –14.4% which was the largest reduction in the US.