The National Council on Compensation Insurance (NCCI) has released its annual Carrier Executive Survey, unveiling the leading concerns for workers’ compensation executives heading into 2025. The survey, which gathered insights from over 100 executives in the sector, underscores the financial health of the workers’ compensation system and rising medical inflation as the industry’s top priorities.
“Each year, our Carrier Executive Survey captures the pulse of the industry and helps us pinpoint key issues facing workers compensation stakeholders,” stated Bill Donnell, President and CEO of NCCI. This year’s results reflect an enduring focus on the stability of the compensation system and the impact of medical costs, as well as concerns over economic uncertainty and evolving workforce dynamics.
Financial Health of the Workers’ Compensation System Remains Strong
One of the central questions among survey respondents centers on whether the robust financial health of the workers’ compensation system will continue. Over the past decade, the industry has seen combined ratios consistently below 90%, a marker of profitability and stability in the insurance world. Preliminary data for 2024 indicates that the trend of low combined ratios, currently hovering around 90%, will likely persist.
NCCI attributes this financial health to improvements in workplace safety and advancements in automation, contributing to a nearly two-decade decline in claim frequency across states where NCCI offers ratemaking services. “This trend of frequency decline is one we expect to continue,” said Donnell, reinforcing a cautiously optimistic outlook for the coming year.
Medical Inflation Pressures Rising
Medical inflation has emerged as another pressing concern for the workers’ compensation sector. Executives have voiced increasing worry over the growing costs of medical care and their potential impact on the overall system. While current medical inflation in workers’ compensation remains moderate—falling within the 2.5–3.5% range—the trend is being closely monitored, as healthcare costs in workers’ compensation can behave differently compared to other sectors.
Addressing the complexities of medical inflation will be a top priority in 2025, with NCCI aiming to provide industry stakeholders with updated insights and strategies at its Annual Insights Symposium in 2025.
Economic and Workforce Shifts: Adapting to a Changing Landscape
While financial health and medical inflation are top concerns, NCCI’s survey also highlights economic uncertainty and the evolving nature of work as additional challenges. The post-pandemic era has introduced shifts in workforce expectations and an accelerated adoption of remote work models, prompting the workers’ compensation industry to adapt its practices accordingly.
NCCI, with a century of experience, continues to serve as a critical source of data and advisory for the industry. As NCCI looks ahead to its 2025 Annual Insights Symposium, executives and stakeholders anticipate exploring these issues in depth, with the goal of fostering a resilient, adaptive workers’ comp system.
For more details, read NCCI’s full report on the top industry concerns or register for NCCI’s Annual Insights Symposium 2025.
About NCCI:
With over a century of expertise, NCCI remains at the forefront of workers’ compensation research, providing the industry’s most comprehensive data, insights, and analysis. Through its work as a licensed rating, advisory, and statistical organization, NCCI upholds a mission to support a stable and healthy workers’ compensation system, underpinned by a commitment to inclusion, diversity, and respect.