2024 Workers’ Compensation Insurance Market Outlook

Posted January 09, 2024

Profitable underwriting results have generated favorable conditions across the workers’ compensation insurance segment for nearly a decade. According to the National Council on Compensation Insurance (NCCI), the segment produced a combined ratio of 87 in 2022, demonstrating continued profitability. These conditions pressed on in 2023, but industry experts reported that reserve redundancies stemming from reduced presumptive liability issues since the beginning of the COVID-19 pandemic and increased market competition could drive down profits in 2024. Fortunately, these experts also confirmed that it would take a drastic shift in segment losses to actually push the ratio over 100, thus limiting potential impacts for policyholders. As a result, most insureds can expect another year of flat premiums or modest rate reductions, while those with elevated risks may encounter increased pricing.

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