Jayne Kresac
National -The National Council on Compensation Insurance (NCCI) released its 2020 State of the Line Report last week. In its findings, NCCI showed that net written premiums dropped 10% in large part due to the pandemic recession. It also found that nonCOVID claims dropped 7%, and carriers reported $260 million total COVID-19 incurred losses. Nursing homes, hospitals, clinics, other healthcare settings, and first responders accounted for 75% of COVID claims. The most severe 1% of COVID claims made up 60% of COVID loss dollars. The average severity of COVID claims was around $6,000 out of 45,000 claims. Despite the effects of COVID, “the workers compensation system has been strong and resilient,” according to NCCI Chief Actuary Donna Glenn, as reserve redundancy numbers remain robust. Data released by Sedgwick showed that healthcare workers were heavily responsible for the uptick in increased mental health claims. In 2020, mental health claims rose by an overall 2.4%
05/13/21
Robert Wilson
NCCI has been conducting their Annual Issues Symposium this week, and as usual they have provided a slick presentation format filled with highly accurate and useful data for the industry. The numbers they have been reporting are undeniably encouraging. The industry is profitable, incident rates are down, and, most critically, Covid did not have the impact that was once initially feared. The wave of expected Covid claims did not materialize, and as importantly, the industry pivoted and adapted to unexpected changes with surprising fluidity.
All in all, a great snapshot for the industry. Or was it?
By all accounts, NCCI is a great organization doing a yeoman s job for the states they serve. I have tremendous respect for the organization. However, they represent (by my fumbling and haphazard count
NCCI AIS 2021 Highlights Report Reflects a Strong and Resilient Workers Compensation System
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BOCA RATON, Fla., May 13, 2021 /PRNewswire/ The US workers compensation system is emerging from the coronavirus pandemic stronger than ever, said Bill Donnell, President and CEO of the National Council on Compensation Insurance (NCCI). Donnell and NCCI experts shared an in-depth assessment of workers compensation trends and analysis during NCCI s
Annual Issues Symposium themed Stronger Together and held May 11–12, 2021.
2020 Workers Compensation Highlights - #ncciAIS
NCCI - Looking Ahead in 2021 - #ncciAIS
The work comp system is emerging from the coronavirus pandemic stronger than ever. -Bill Donnell, NCCI President & CEO
NCCI: Workers’ Comp Line Thrives Despite COVID-19
The workers’ compensation line powered through the COVID-19 pandemic last year, generating an average profit of 24% while carriers built up $14 billion in “redundant reserves,” the National Council on Compensation said Tuesday during its virtual Annual Issues Symposium.
Chief Actuary Donna Glenn said clearly, the anxiety that NCCI expressed last year about the potential impact of COVID-19 was overblown.
“We feared that it could be devastating for the workers’ compensation system and it was not,” she said.
Donna GlennAccording to NCCI’s State of the Line report, the workers’ compensation line experienced a combined ratio of 87% in 2020, up from 85.4% in the previous year. The 13% underwriting gain in 2020 was on top of an 11% return on insurer investments, leading to an average profit of 24%.
The
economy recovery is uneven at best. Auto manufacturing is hamstrung by scarcity of parts and a steel shortage, construction by not enough sawmill and timber workers, and many sectors desperate for parts lamenting the scarcity of
Hotels, restaurants, cruise lines and airlines are still a long way from pre-COVID revenues.
Supply chains will straighten out, demand will drive up wages for workers in key sectors, and that will drive increased employment.
All that may well increase occupational injuries.
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As “injury-intensive” industries such as manufacturing, logistics, energy, and construction staff up and accelerate production to meet rising demand, they will: