NCCI chief actuary Kathy Antonello gave the State of the Line address at NCCI’s Annual Issues Symposium in Orlando yesterday. Antonello explained in the speech that the average combined ratio for NCCI states declined to 89 percent last year, which indicates that the workers’ compensation market as a whole is healthy and continues to be quite profitable. Other highlights from the address include:
- The overall reserve position for private carriers improved in 2017. NCCI estimates the year-end 2017 reserve position to be a $1 billion deficiency—down from $5 billion in 2016.
- Average lost-time claim frequency across NCCI states declined by 6 percent in 2017, on a preliminary basis. A similar percentage decline was observed in 2016.
- In NCCI states, the preliminary 2017 average indemnity and medical lost-time accident year claim severities both increased by 4 percent relative to their corresponding 2016 values.