BOCA RATON, Fla., May 11, 2021 / PRNewswire / – The National Council on Compensation Insurance (NCCI) today released detailed data on the performance of the U.S. employee compensation scheme in 2020. Due to the loss of jobs and the decline in payrolls during the pandemic recession, the net premium written fell 10% $ 42 billion However, private insurers recorded a profitable calendar year combined ratio of 87, for the fourth year in a row with a combined ratio of less than 90 for employee compensation insurance.
“The compensation system was strong and resilient,” said Donna Glenn, NCCI’s chief actuary.
“The pandemic was the moment to rise to the challenge and the compensation system did so with integrity,” he said Bill Donnell, President and CEO of NCCI. “Our employee compensation system fulfills its noble mission of helping injured workers.”
Donna Glenn, Chief Actuary of NCCI, said, “The pandemic has been devastating to families, healthcare workers, and the economy. The compensation system has been strong and resilient. While net premiums have fallen significantly during the recession, other financial metrics remain cheap or near historic highs. We saw fewer COVID-19 claims than originally thought. “
Here are other important details contained in NCCIs Line report status to employee compensation insurance:
- Combined ratio– The combined calendar year rate is 87, while the reported combined year accident rate is 100.
- Reserves—The reserve position for private insurers remains strong and grows to a redundancy of $ 14 billion at the end of 2020.
- COVID-19 claims—The workers injured by COVID-19 made more than 45,000 claims in 2020, with more than 95% of those claims costing less than $ 10,000. Porters reported $ 260 million Overall, COVID-19 suffered losses in 2020.
- Workers injured by COVID-19– The hardest hit were workers in nursing homes, hospitals, clinics and other health care facilities, as well as first aiders, who together make up 75% of the claims.
- COVID-19 severity– To date, the most expensive 1% of COVID-19 claims account for 60% of COVID-19 lost dollars
- Claim frequency– Without COVID-19 claims, the loss frequency decreased by 7% in 2020, thus continuing the long-term decline in the loss frequency during downtime.
- Claim severity– While the severity of the compensation claim is expected to increase by 3% in 2020, the average cost of the medical part of a compensation claim will change between plus and minus 2%.
The full employee compensation Line report status and Line status are available at ncci.com.
Glenn and other NCCI experts identified a number of issues on the organization’s watchlist, including uncertainty about how long-distance workers fare and how quickly the recovery will lead to spikes in payrolls and employee compensation awards.
About NCCI
The National Compensation Insurance Council (NCCI), founded in 1923, has the task of promoting a system of compensation for healthy workers. To support this mission, NCCI collects data, analyzes industry trends and gives objective recommendations on insurance rates and loss costs. These activities, combined with a comprehensive set of tools and services, make NCCI the source you can trust for compensation information.
Media contact:
Cristine Pike, NCCI
Manager, communication
561-893-3631
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SOURCE NCCI
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