Reports Show COVID Impact on Claims, Premium
The National Council on Compensation Insurance (NCCI) reported that net written premium for workers’ compensation took a hit in 2020, but profit levels remain strong. The report, based on NCCI estimates and data from the National Association of Insurance Commissioners, indicated that net premium for calendar year 2020 is estimated to be at just under $39 billion, down 8.1 percent from 2019, and the combined ratio will rise to 86 percent from 85 percent for private carriers nationwide. A lower percentage indicates higher profits in the combined ratio equation.
NCCI pegged the decline nationwide to the overall average impact of decreases in rates/loss costs approved by state insurance departments for 2020.
Meanwhile, the Workers’ Compensation Research Institute released a study showing that the share of claims that were coronavirus-related varied greatly across the 27 states examined. However, three states had an unusually large prevalence of COVID-19 claims in the second quarter: Massachusetts (42%), New Jersey (34%), and Connecticut (23%).