Today’s issue of WorkCompRecap features NCCI’s release of its State of the Line Report for 2022, which found that private carriers posted a profitable CY2022 combined ratio of 84, marking the sixth consecutive year with a combined ratio below 90, and ninth consecutive year of underwriting profitability.
NCCI noted that despite an unsettled environment over the past few years, the reality is that workers comp has had more tailwinds than headwinds influencing results, and that premium is up by 11%, which has essentially made up the ground that was lost during the pandemic. Other key findings included that lost-time claim frequency returned to its 20-year trend, declining 4% in the past year. The report includes a notable rise in severity for 2022, with medical claim severity increasing about 5% and indemnity claim severity rising about 6% year over year, but notes a longer-term perspective indicates it is a manageable rise.