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2023 NCCI Annual Insights Symposium – System Is Healthy


2023 NCCI Annual Insights Symposium – First Morning Top 10 Concepts

The 2023 NCCI Annual Insights Symposium (AIS) provided so much good worker’s comp data at such a fast pace. I decided to cover the Top 10 Concepts from NCCI (bolded) with my comments after each concept.

pic 2023 ncci annual issues symposium chart net combined ratio
(c) NCCI

2023 NCCI Annual Symposium Key Takeaways: 

  1. Worker’s compensation premium increased by 11% in 2022, returning to approximately the same level as four years ago, in 2019. This means the economy and workers comp system is back to where it was before the pandemic.  The 11% increase is the largest I can remember since I started analyzing workers comp data in 1996.
  2. The calendar year combined ratio for worker’s compensation is 84%, a sign of underwriting profitability for the system.   Being below 100% for eight years means the worker’s comp insurance system has retained its profitability numbers since 2016. Check out the chart for more info.
  3. The worker’s compensation reserve redundancy grew to $17 billion. I had written on reserve redundancy in this article.  I see it as the carriers possibly over-reserving their files. NCCI sees it as a healthy cushion.
  4. Lost-time claim frequency returned to its 20-year trend, declining 4% in the past year. Frequency has been declining since the early 2000s.  An increase in severity has partially offset the frequency reduction.
  5. NCCI reported a notable rise in severity for 2022 with medical claim severity increasing about 5% and indemnity claim severity rising about 6% year over year. The longer-term perspective indicates this is a manageable rise. In my humble opinion, the indemnity claims severity surpassed medical claims severity due to the resistance by the injured workers to attend follow-up physician appointments.  Approximately 35% of the claims we consulted on during the pandemic had medical treatment hesitancy with the concern for COVID in medical facilities. The hesitancy caused the indemnity part of the claims to increase dramatically over time.
  6. The loss and severity numbers produced by NCCI had the COVID-19 claims removed completely.  Removing the COVID claims from the severity and frequency stats made sense as they were not included in any employer’s Experience Modification Factor (E-Mod).
  7. Workers Comp is still the most profitable P&C line.  I used to have the so-called experts laugh at me in 2010 when I said that Workers Comp can be written as a standalone line without having to write package deals and include WC as part of the package of policies.
  8. The number of workers under Classification Code 8871 (Telecommuter) increased from comparatively 1% of Class Code 8810 to 10% of 8810.  The number of telecommuter workers increased 10-fold due to the pandemic and the move towards remote workers.
  9. The only way the payroll increases will stop is by a shock to the economic system such as a recession, another pandemic, or some type of political change.
  10. ChatGPT loves itself greatly. Whenever NCCI President Bill Donnell asked the AI to write an introduction to his speech, ChatGPT called the 2023 NCCI Annual Insights Symposium the 2023 Artificial Intelligence Symposium.

This morning was full of such good info that I could have added in a few more concepts.  I will stop with my 2023 NCCI Annual Insights Symposium at 10.  I will write another article tomorrow on the second day of the conference.

Also Read: NCCI COVID-19 Data Release – Hidden Surprise Numbers



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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