SOURCE: MyNewMarkets
Workers’ compensation line remains the most profitable property/casualty segment, with a combined ratio well under 100.
The segment saw a 1% growth in net written premiums from 2022 to 2023, with 2023 net written premiums for private carriers totaling $43 billion, according to the National Council on Compensation Insurance (NCCI).
Last year was the 7th consecutive year with a combined ratio below 90. Payroll increased by about 6% in 2023 – 2% from employment and 4% from wages. Meanwhile, lost time claim frequency declined 8% in the past year.
Pharmacy costs have dropped 24% since 2012 due to decreased opioid prescribing and a shift to generic use, leading to savings in direct pharmacy expenditures and workers’ compensation settlements.
Weather-related injuries, the evolution of safety and the impacts of mental health are critical factors to watch, according to NCCI.
While adopting high-tech safety measures helps prevent accidents, over 60% of lost time claims are attributable to strains, slips and falls.
Early identification of mental health issues will also be vital in lowering costs. NCCI figures indicate that, on average, claims with a mental health diagnosis are six times more expensive than those without such diagnoses.
