The National Council on Compensation Insurance (NCCI) released their Residual Market Management Summary 2016, a yearly publication that looks at statistical information for the assigned risk plans and reinsurance pools they serve. It shows that for the fourth year in a row things have generally remained stable and predicts the same for 2017 residual market premiums and shares.
NCCI provides residual market services in 31 states, administering a Workers’ Compensation Insurance Plan (WCIP), and/or the National Workers’ Compensation Assigned Risk Pool (NWCRP), or a number of other services such as financial, actuarial and oversight services.
Residual market premium, market share and operating results remain largely unchanged. The projected ultimate residual market written premium for Policy Year 2016 is $1.1 billion, a $54 million decrease from 2015. They expect the estimate to change as carriers begin to report additional premiums and losses.
The residual market share of the workers’ compensation market was reported as 7.7 percent, attributed to a small decrease in residual market premium. It was 8.1 percent in 2015. Operating results in 2016 were a little bit worse, possibly due to large losses, the deficit is estimated at $71 million in 2016. The combined ratio of all pools serviced by NCCI is estimated at 106%.
The summary also includes premium size profiles for states and broke down classifications by largest premium volume and largest policy count.
The report contains results from a customer satisfaction survey which shows high customer satisfaction.