Boca Raton, FL – Workers compensation executives are concerned about the uncertainty surrounding the economy, medical inflation, the shifting workforce and workplace, and rate adequacy according to the latest survey from the National Council on Compensation Insurance (NCCI).
NCCI conducted the quantitative survey of 100 workers compensation executives recently, looking ahead to key issues for the system in 2023, NCCI’s centennial year.
“The workers compensation system is healthy and resilient, but industry leaders must always anticipate future challenges,” said Bill Donnell, president and CEO of NCCI. “It has never been more important for NCCI to deliver timely insights and rigorous analysis to aid in their decision making.”
The survey shows four issues top the list of concerns:
- Rate Adequacy — The workers compensation system has experienced years of declining loss costs and rates. There is uncertainty about when and if this downward trend will change.
- Medical Inflation — Treatment costs continue to rise, especially for new and advanced treatment and prescription drugs.
- The Economy — The uncertainty surrounding growth, interest rates, the labor market, and investment returns all point to a complicated economic landscape for insurers.
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Shifting Workforce and Workplace — Two major trends are creating issues:
- Worker shortages and inexperienced workers. Insurer executives are concerned that an influx of less-experienced workers could increase the frequency and severity of on-the-job injuries.
- Remote and hybrid workers. Insurers are waiting for post-pandemic data to gain insight on injury rates for at-home and hybrid workers.
As NCCI marks its 100 years of service, the survey results will aid in developing additional research and programs to support the health and stability of the workers compensation system.
View the complete report: NCCI: Workers Compensation Industry Leadership Survey Report
Save the Date: Thursday, January 26, 2023, at 2:00 p.m. ET
NCCI Chief Actuary Donna Glenn and NCCI Chief Customer Operations Officer Mark Mileusnic will take a deeper dive into the top concerns in an upcoming Virtual Carrier Education Series webinar. You don’t need to be an insurance carrier to attend—the webinar is free and open to all. Registration details are coming soon to ncci.com.
Source: NCCI