Comp combined ratio deteriorates slightly in 2023

The combined ratio for the U.S. workers compensation market worsened slightly in 2023 even as premiums increased year over year, according to an S&P Global Market Intelligence analysis released Tuesday.

The workers comp combined ratio increased to 84.9% from 84.5% this year, as direct premiums written and net premiums written also grew to $56.69 billion and $48.02 billion, respectively, according to the report.

Although higher than the previous year, 2023’s combined ratio remained stronger than the five-year peak of 88.1% in 2021, S&P said, with analysts stating that 2025 will likely be another profitable year for the industry “short of an unexpected turn in the domestic economy, judicial environment or other underlying cost drivers.”