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NCCI Virginia Advisory Forum 2018 – Shocking Nationwide Statistics

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Shocking Results at NCCI Virginia Advisory Forum – All Good

The NCCI Virginia Advisory Forum showed a strong Workers Comp market.   The strong market is not surprising.   The strength of the nationwide market was astounding.

pcture of working NCCI Virginia Advisory forum
Public Use Wikimedia – Henry Lawford c/o Flickr

I attended the NCCI Virginia Advisory Forum in Richmond yesterday.  North Carolina has it own independent rating bureau.  Richmond lies nearest to our HQ in Raleigh, NC.  The results make it a worthwhile trip.

Last year, the agents/brokers packed it into the meetings.  I arrived 5 minutes late and had to sit in the back.  This year, the carriers and TPA’s were out in force.

The national statistics indicate the Workers Comp market combined ratio dropped to its lowest level since the 1950’s.  What?  Last year the NCCI Virginia Conference produced similar results.

NCCI always provides their slides from almost any meeting or conference.  The slides for the 2018 Virginia Conference are here.    The slides are a PDF file if you wish to download them.

These are my handwritten notes:

  • Combined Ratio – Lowest level since the 1950’s.   See slide 17 in the PDF link above.
  • Payrolls have increased by 3.4% or 4.4% – depends on the source of the estimate.
  • 9.6%  Loss Cost Reduction
  • No end in sight to Combined Ratio reduction – quoted by Jay Rosen, NCCI Presenting Actuary

The Combined ratio can be thought of as a profit figure.  The lower the figure, the more possible profit there is in the market for carriers.   I myself had thought there would be a bottom to the net combined ratio.   There does not seem to be one now or in the foreseeable future.

The formula for the combined ratio is in this article from the 2017 Virginia Advisory Meeting.   Last year, the ratio was .94.  For some reason, I had thought that was the bottom.   I was incorrect.

My notes also show a result of a polling question asked by NCCI towards the end of the conference.

What is the most important issue to you with Workers Comp?  

The two main categories were:

  1. Fraud – by a large margin
  2. Cost – a distant second

I recommend downloading the PDF file from this presentation and reviewing it.  It will be worth your time to see all the topics covered at the NCCI Virginia State Advisory Forum.

 

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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