NCCI Report Highlights Profitability and Challenges in Workers’ Compensation Insurance

The NCCI reports sustained profitability in private workers’ compensation insurance, with a combined ratio of 86 for the past two years and below 90 for seven consecutive years.

Despite this, the share of net written premiums in workers’ comp fell from 8% to 5% between 2003 and 2023. Adjuster dissatisfaction due to high workloads and burnout is a growing concern, prompting efforts to integrate AI for efficiency. However, the industry faces a talent deficit, and the need for experienced managers to oversee AI remains critical.

The ethical balance between advocating for injured workers and supporting claims adjusters is essential for sustainable success.