Deteriorating Comp Results Called 'Scary'
Monday, July 10th, 2000 Workers' CompensationNew data from the National Council on Compensation Insurance showing that 1999 losses for workers' compensation carriers were greater than initially projected just two months ago drew reactions of fear and concern from industry organizations. The combined ratio for every dollar of losses and expenses against every dollar of premium for the accident year was 134.6, according to NCCI, based in Boca Raton, Fla. The group also noted that reserve deficiencies for the industry totaled $18.3 billion. That latter figure is "scary if accurate," said Nancy Schroeder, assistant vice president for workers’ comp at the National Association of Independent Insurers in Des Plaines, Ill. The NCCI in April had put the national reserve deficiency for workers’ comp at $16.9 billion—or two percentage points lower than the current projection of 28 percent of total reserves.
