Comp system stability, medical inflation among top concerns: NCCI survey

The financial health of the workers compensation system and medical inflation continue to be top concerns for insurance industry executives, according to survey results released Tuesday by the National Council on Compensation Insurance.

The Boca Raton, Florida-based ratings agency recently surveyed 100 workers compensation executives to address key issues for 2025.

The financial health of the workers compensation line, the most profitable in property and casualty, was named a top concern. NCCI said in a statement that “all metrics point to a healthy and strong system, as evidenced by nearly a decade of combined ratios below 90%.”

“Preliminary results for 2024, based on National Association of Insurance Commissioners data through midyear, suggest another strong year with a combined ratio of 90% or below. Improvements in safety and automation have contributed to nearly 20 years of frequency decline in states where NCCI provides ratemaking services. We expect this trend to continue,” NCCI said.

Medical Inflation, another top concern, is “moderate and in the range of 2.5-3.5%,” NCCI said, adding that medical inflation “behaves differently in workers compensation compared to the broader economy.”

The survey also pegged “economic uncertainty” and “the changing workforce and workplace” as other top concerns among industry executives.