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NCCI Virginia 2019 Advisory Forum – Something Not Seen Since 1931

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NCCI Virginia 2019 Advisory Forum – Updates

I decided to try blogging the NCCI Virginia 2019 Advisory Forum live.  I am using a mini-laptop so if I make mistakes – sorry.

Photo DMI Conference NCCI Virginia 2019 Advisory
Wikimedia Public License – DMI

If you can make it to one of these forums it is only two hours long and so full of data your head will spin -in a good way.

The PDF for this NCCI Virginia 20019 Advisory Forum can be found here (PDF file)

National Statistics 

The Combined Ration s the lowest since 1931 (post-depression?).   Insurance carriers overall had a 17% profit level due to Combined Ratio of .83.   Yes, that is right – .83.  /that is totally amazing.  Does this mean the Workers’ Compensation market is healthy?

The net payroll increased due to a new tax law in 2018 that made the offshore tax advantages less, so the offshore ceding to a foreign carrier was brought back onshore.

Loss development is decreasing over time – possibly due to addressing the opioid epidemic.  In my opinion it was due to the fee schedules enacted lover the last few years.

Virginia Statistics 

For 2017 Virginia had a 1.5% decrease in Indemnity claim severity. The medical indemnity claim severity decreased by 7.8%.

The average Loss Cost level change is -10.7%. The decrease  The Contracting industry group was reduced by 12.6%.

Virginia Residual Market

Virginia Assigned Risk Plan has 6.% of the total market share.  NCCI administers the Assigned Risk Plan for 21 states.  16,516 policies were issued in the Residual Market.  (Residual Market = Assigned Risk Plan)

The average Assigned Risk Plan policy in Virginia is $3,700.

National and Virginia Labor Market Statistics

Picture of Man Working NCCI Virginia 2019 Advisory Construction
Wikimedia – LeBlanc Construction Photos 2012

Virginia has slower than the National labor market growth.  The Average Weekly Wage has increased by 3.6% for 2018.

Virginia lost 3.8% employment in Information Technology.  The number is usually negative.  the Natural Resources and mining payroll increased by almost 10%.

The average unemployment rate in Virginia hit an all-time low of 3.0%.

Virginia Legislative Activity

HB 2022 removed Statute of Limitation for injured workers.

Medical Data 

Hospital paid amount for in-patient per stay was $40K+.  The national average was 30k.   ASCs were 50% higher than the national average in Virginia.

I did not include much of the medical data as the new Virginia fee schedule will change the numbers greatly over the next few years.

24% of Worker Comp RX’s were opioids. That figure is the same as the national figure.

Rotator cuff tear was the most expensive claim in Virginia at $44,000 on average.

NCCI video of how Workers’ Compensation has helped injured workers return to gainful employment.

The two NCCI Virginia 2019 Advisory Forum presenters were David Benedict and NCCI Actuary Jay Rosen.

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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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