Workers’ compensation line shows mixed 2011 results
While workers’ compensation premium increased 7.4% in 2011, the combined ratio for the line remains at an unsustainable level, according to a new report by the National Council on Compensation Insurance (NCCI). The combined ratio came in at 115 in 2011, the same level as in 2010. The current state of the market remains “conflicted,” the council said in its annual State of the Line workers’ compensation market analysis.
Net written premium grew to $36.3 billion in 2011. The increase was the first since a 2005 gain, which was followed by a cumulative 27% premium decline from 2006 to 2010.
“In some ways, we are seeing an improved condition from 2010,” said NCCI president Steve Klingel. "By other measures, however, the market remains in a worrisome state. In sum, we see a market that is conflicted as to its forward trajectory, and that makes for a challenging environment."
Written premium growth shows the industry is well capitalized going forward, though the workers’ compensation segment has the highest combined ratio of all major commercial lines, according to the report.
To view other key findings of the report and further commentary from NCCI chief actuary Dennis Mealy, see this Insurance Journal article.