Workers Comp Insurers in Precarious Position

By Staff Report

May. 10, 2010

The state of the U.S. workers’ compensation insurance industry is in a “precarious position” following a trying 2009, while economic uncertainties remain ahead, said NCCI Holdings Inc.

The pace of economic recovery and unknown factors related to health care reform and financial regulation are among uncertainties facing the U.S. industry, NCCI said Thursday, May 6, in its annual “State of the Line” market analysis.

Meanwhile, workers’ comp insurers’ 2009 combined ratio rose to 110 percent from 101 percent the previous year—the largest single-year increase since the mid-1980s, said the Boca Raton, Florida-based unit of the National Council on Compensation Insurance Inc.  

Three percentage points of that combined ratio, however, stem from a single insurer adding $1 billion to its reserves. NCCI did not name the insurer, but it said the combined ratio coupled with inadequate investment yields are among market challenges faced by workers’ comp insurers.

Price decreases due to competition and a 23 percent decline in written premiums over the past two years also weighed on private insurers and state workers comp funds, NCCI said.

The report is available online at  

 Filed by Roberto Ceniceros of Business Insurance, a sister publication of Workforce Management. To comment, e-mail


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

What’s New at

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog


Minimum Wage by State in 2023 – All You Need to Know

Summary Twenty-three states and D.C. raised their minimum wage rates in 2023, effective January 1.  Thr...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog


Exempt vs. non-exempt employees: knowing the difference

Summary Employees are exempt from FLSA requirements when they meet specific exemption criteria based on...

Department of Labor, exempt employees, Misclassification, non-exempt employees

workforce blog


California fast food workers bill: why it’s more than meets the eye and how to prepare

Summary: California signs bill establishing a “fast food council” that has the power to raise the indus...