Boca Raton, FL – NCCI recently announced the release of its Residual Market Management Summary 2014, noting that it is the best source for obtaining facts and figures about workers compensation residual market plans and reinsurance pools that are serviced by the National Council on Compensation Insurance (NCCI).
2014 was another successful year for workers compensation residual market administration, powered by the experience of the NCCI residual market staff and our assigned carrier partners. The year was marked by a significant slowdown in the growth of the residual markets in most states and high levels of customer satisfaction.
Among the highlights:
- The Policy Year 2014 estimated ultimate written premium for all reinsurance pools serviced by NCCI was $1.15 billion—an increase in written premium of 7% from the prior year.
- There was a significant reduction in the growth rate, which was 60% in 2012 and 32% in 2013.
- The slower pace of growth, which tracked the premium growth in the voluntary market, resulted in an estimated residual market share of 6.8%, which was slightly above the residual market share in 2013.
These figures are an important indicator that the voluntary workers compensation market is competitive and stable and that the residual market is manageable and operating effectively.
Click here to view: NCCI: 2014 Residual Market Management Summary (PDF)