VIEWS: 10 PAGES: 2 CATEGORY: Business & Economics POSTED ON: 5/30/2010
According to data presented at the Annual Issues Symposium (AIS) of the National Council on Compensation Insurance (NCCI), indemnity represented 54% of total comp losses back in 1987. Twenty years later, indemnity accounts for only 41% of losses, according to estimates by NCCI for 2007 loss costs. And by now, medical costs have easily passed the 60% level. In his report on the state of the line, NCCI Chief Actuary Dennis Mealy, FCAS, MAAA, pointed out that the underwriting results were strong, with the workers comp industry coming in with a combined ratio of 93% in 2006 and 99% in 2007. While the underwriting results were quite good, Mealy noted that they needed to be since investment returns were well below historical averages, making it imperative that the industry continue to focus on an underwriting profit.
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