workers’ compensation
Workers’ compensation line shows mixed 2011 resultsPosted by RJ and Makay on May 17, 2012 |
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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.
The National Insurance Crime Bureau (NICB) logged a record 100,450 questionable insurance claims in 2011, a 9.4% increase from 2010 and the highest ever in the bureau’s 100 year history, the NICB said. There was also a 19% rise in suspicious claims activity from 2009 to 2011. About 1,100 property/casualty companies and self-insured organizations are NICB members.
The U.S. workers’ compensation insurance segment continued to face competitive pricing and continued rate decreases in 2010. The line also dealt with weak economic factors, growing medical costs and an uptick in claim frequency in 2010, according to A.M. Best. Consequently, premium volume has declined and underwriting results have further deteriorated.
