Today’s issue of WorkCompRecap features the release of NCCI’s Residual Market Management Summary for 2016, which it refers to as the best source for facts and figures about the workers’ comp residual market plans and reinsurance pools that NCCI services.
Highlights from the report include that 2016 was the fourth year in a row where the residual market premium, market share, and operating results have remained stable, which NCCI viewed as a notable achievement given the potential for volatility in residual markets. NCCI also noted that the residual market share of the overall workers compensation market came down to 7.7% in 2016 from 8.1% in 2015, with projected ultimate residual market written premium for Policy Year 2016 of $1.1 billion. Operating results for 2016 for all states combined were slightly worse than prior years, but remain manageable, with the estimated 2016 deficit of $71 million representing only -0.5% of voluntary workers comp premium, and not creating a significant drag on the system.
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