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.
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)
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.
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
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.
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.
Also Read: Monopolistic Workers Comp States Examined Further
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