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Comp premium dips slightly in 2019

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Net written premium in the workers compensation industry for 2019 calendar year dipped slightly from the prior year to $42 billion for private insurers, according to a report released Monday by the National Council on Compensation Insurance, but given the uncertainties surrounding the pandemic, the ratings agency declined to provide estimates for 2020.

Workers compensation premium volume declined 3% in 2019 compared with 2018, and premium is expected to further erode by about 7.2% as a result of rate/loss cost filings made in the Boca Raton, Florida-based ratings bureau’s 36 states.

The net combined ratio for workers comp is projected to remain low in workers comp, ending 2019 at 85% for private insurers, which would be the second lowest combined ratio in written history, NCCI said.

Investment gain on insurance transactions in workers comp is expected to be 10.6% of earned premium in 2019 based on current data, which is below the long-term average of 12.6% since 1999, though an improvement of compared with the gain of less than 10% reported in 2018.

Workers comp pretax operating gain declined slightly to 25.2% in 2019 compared with 26% in 2018. However, this is the third consecutive year that the operating gain exceed 20% in the workers comp industry, according to the report.

Although NCCI typically provides primary estimates of net written premium volume and the combined ratio for 2020 at this time of year, the ratings bureau said it cannot provide this data yet “given the uncertainties surrounding the current pandemic.”

More insurance and workers compensation news on the coronavirus crisis here.

 

 

 

 

 

 

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