Boca Raton, FL – NCCI recently released a new Insights article titled Workers Compensation Catastrophes: Past, Present, and Future.
Catastrophes in insurance are generally associated with large losses that occur in the property lines of business, such as from natural disasters. However, the workers’ compensation (WC) industry is not immune to the impacts of extraordinary loss events.
COVID-19 has generated renewed interest in NCCI’s treatment of catastrophic losses in its ratemaking process.
The article examines the reflection of catastrophic losses in the ratemaking process, as well as NCCI’s catastrophe provision filed and approved in many states.
Key insights in the report included:
- NCCI now defines a catastrophe as any single event with $50 million or more of workers compensation losses.
- NCCI has concluded that the current catastrophe load in ratemaking is sufficient.
- While uncertainty always remains, the system has a much greater understanding of pandemics and other extreme risks compared to two years ago.
Read the full insights article here: NCCI: Workers Compensation Catastrophes: Past, Present, and Future.
Check out Director of Data Science Katherine Williamson’s full AIS presentation on the subject here: