State of US Workers Compensation Industry

The following key insights are from the National Council on Compensation Insurance’s annual report on the state of the workers comp industry:

• The workers compensation line is strong and healthy.
• The system saw its eighth consecutive year of underwriting profitability with a calendar year combined ratio of 87, outperforming other property-casualty lines.
• Net written premiums rose about 1% in 2021.
• Lost time claim frequency data suggests the long-term decline continues, despite a rise in frequency in 2021. Since 2019, frequency has declined slightly.
• There is no change expected in medical and indemnity claims severity in 2021.
• There are potential challenges ahead as medical costs could experience inflationary pressure.
• Workers compensation reserves are robust. Reserves grew to $16 billion redundant as of year-end 2021.

COVID-19 Update Key Insights

• The number of COVID-19 claims declined in 2021 with indemnity-only claims making up more than 50% of those claims.
• Most COVID claims continue to be small. However, claims of more than $100,000 account for 1.2% of claims and 66% of losses. Nearly half of the most complex claims—those of more than $500,000—involved workers who died.
• Healthcare workers remain the most impacted by COVID-19 even as the number of impacted workers in nursing/convalescent homes declined substantially in 2021.related injuries and illnesses.

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State of US Workers Compensation Industry

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