The National Council this morning gave its annual update on the state of the workers’ compensation line. As always, Chief Actuary Kathy Antonello did an awesome job of updating the most senior workers’ comp professionals across the globe on all of the relevant economic performance indicators that help us to understand this line of insurance.
The full report can be found off the NCCI website…
…as well as other conference highlights. Some key points to me from the report:
- The expected combined ratio for this year is the lowest in almost half a century at an 89. This is 5 points lower then last year’s 94. This indicates an operating margin of 11 points on average.
- The investment income gain went from 10.4% to 12% this year, effectively providing an overall return to workers’ compensation insurers of 23%
- The overall market volume dropped from $45.6b to $45b in premiums, mostly due to rate drops countrywide.
- The top five class codes (hardest to place) in the residual market are:
- Carpentry 5645
- Roofing 5551
- Local Trucking 7228
- Painting 5474
- Long Haul Trucking 7229
I’d expect a lot of capital support for the line due to these results.
Always a great event and wonderful to catch up with so many friends –