NCCI recently announced the release of their Residual Market Management Summary for 2010 and described it as the best source for obtaining facts and figures to understand current situations in the workers compensation residual market plans and reinsurance pools that are serviced by the National Council on Compensation Insurance, Inc. (NCCI). NCCI stated that the summary shows that 2010 was a good year for workers compensation residual market administration.
Key indicators included:
- State workers compensation systems remained stable
- Residual markets continued to depopulate
- Overall residual market operating results deteriorated
NCCI also shared the following:
“For the sixth year in a row, the premium fell in residual market reinsurance pools serviced by NCCI. Estimated ultimate written premium for 2010 is approximately $432 million. Written premium for these pools peaked in 2004 at $1.5 billion. As a result of the depopulation, the residual market share of the total workers compensation insurance market is 3.5% in NCCI states; its lowest level since 2000. The combined ratio for the residual market pools serviced by NCCI has moved from the 115% range to 120% in our early estimates for Policy Year 2010. We are watching this closely.”
The full report is available from NCCI’s site here (PDF).