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Video Broadcast NCCI Releases its State of the WC Line Report Runtime 1:54 Real Media 56k | Broadband Windows Media Player 56k | Broadband Quicktime 56k | Broadband

For the sixth year in a row, the U.S. workers’ compensation industry has achieved record level underwriting losses. The combined ratio for 2001 is an estimated 121 percent, up 3 points from 2000’s combined ratio of 118 percent.

NCCI Holdings, Inc. released the combined ratio figures for 2001, May 9 at it’s Annual Issues Symposium. This year approximately 500 insurance executives gathered in Orlando, Fl to hear NCCI deliver its “State of the Workers Compensation Insurance Line,” presentation.

Commercial lines were subject to enormous losses as a result of Sept. 11, but NCCI found that only two percentage points for workers’ compensation combined ratio could be attributed to the attacks. Although a surprise to many, the small percentage is because re insurers absorbed a substantial portion of the workers’ compensation losses.

Return on investment has hurt carriers and has kept them from achieving profitability.

Also reported was the workers’ compensation industry in a worst-case scenario could be under reserved by as much as $21 billion in 2001.

Medical claims costs are up for 2001, along with indemnity payments as a result of an increase in medical severity.

Chapin Clark, NCCI president and CEO said, that NCCI expects more carrier consolidation this coming year and also sees 2002 as a transitory year for the industry.

The complete report can be downloaded from NCCI’s website, www.ncci.com.