Workers’ Compensation Carriers Post a Profitable Year for 2021

​​​The National Council on Compensation Insurance (NCCI) today released its performance metrics for the US workers compensation system for 2021. Private carrier plus state fund net written premium increased about 1% to $43 billion in 2021 (private carrier premium alone was $38B). Private carriers again posted a profitable Calendar Year 2021 combined ratio of 87. It is the fifth consecutive year with a combined ratio below 90 for the workers compensation insurance market and the eighth consecutive year of underwriting profitability.

Source: NCCI | Published on May 11, 2022

worker's compensation

“The strength and resilience of the workers compensation system is a point of pride for all stakeholders,” said Bill Donnell, President and CEO of NCCI. “As the workforce and workplaces are changing, the industry must step up again to fulfill its noble responsibility: helping injured workers.”

“Strong employment and significant wage growth are fueling workers compensation payroll increases,” NCCI Chief Actuary Donna Glenn added. “We have a remarkably strong and healthy system right now.”

Additional key insights in NCCI’s State of the Line Report include:

  • Lost-time claim frequency data suggests the long-term decline has continued, despite a rise in frequency in 2021. Since 2019, frequency declined slightly.
  • The 2021 changes in indemnity and medical claim severity are expected to be flat.
  • The number of COVID-19 claims declined in 2021 relative to the prior year.
  • Workers compensation reserves grew to $16 billion redundant as of year-end 2021.

Glenn issued the State of the Line Report at NCCI’s Annual Insights Symposium on May 10 in Orlando, FL.

The State of the Line Report and State of the Line Guide are available now at ncci.com/AIS.

About NCCI

Founded in 1923, the mission of the National Council on Compensation Insurance (NCCI) is to foster a healthy workers compensation system. In support of this mission, NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations. These activities—combined with a comprehensive set of tools and services—make NCCI the source you trust for workers compensation information.