Insurers concerned about 2024 comp outlook: NCCI
Reprints
Workers compensation executives are worried about the economic and financial state of the system moving into 2024, with rate adequacy, medical inflation and the shifting workforce among some chief concerns, the National Council on Compensation Insurance reported in its annual survey of key industry stakeholders.
The results of the survey, which were announced Monday by the Boca Raton, Florida-based NCCI, function as a “barometer of industry sentiment and helps NCCI determine which topics become the focus of our research and analysis,” NCCI President and CEO Bill Donnell said in a statement.
Workers comp insurance executives surveyed expressed concerns about the steady decline in rates and loss costs and other risks to the long-term health of the system, the NCCI stated.
The industry is also worried about the effect of rising medical costs and increasing wages and workplace risks in an age of telecommuting, gig workers and an aging workforce.
While insurers expressed concerns about market profitability, the NCCI said its data shows a strong and healthy workers comp system. It said it expects to see a 2023 combined ratio under 100, which would mark the 10th consecutive year of underwriting profitability.
Executives surveyed said emerging challenges to the workers comp system include the expansion of marijuana legislation, the effects of artificial intelligence and climate change.
Survey responses came from 101 workers comp leaders.
