NCCI Annual Issues Symposium—2011
August 2011
Presentations from the
2011 NCCI Annual Issues Symposium are available on the organization's
website. The meeting again offered insights on the state of the line as well
as a broad spectrum of issues facing the workers compensation industry and
the insurance industry at large.
by
Christine Fuge
IRMI
NCCI Chief Actuary Dennis Mealy, FCAS, MAAA, delivered a comprehensive
review of current workers compensation results in his presentation on the "State
of the Line." He began by providing an overview of the property-casualty
market results before delving into data specific to workers compensation. Of
particular note with respect to workers compensation is that lost time claim
frequency in NCCI states was up 9 percent in 2010 after declining for the
past 12 years. Additionally, the preliminary combined calendar year ratio
(private insurers) for 2010 is estimated to be 115 percent, which is the
highest it has been since 2001.
The deterioration of the line results coupled with the continued upward
tick of both indemnity and medical severity and the uncertainties
surrounding the impact of health care reform place the workers compensation
marketplace closer to a hard cycle.
Insurance Industry Outlook
Insurance Information Institute (III) President and Economist Robert
Hartwig offered his view of the state of the current property-casualty
insurance market in a presentation titled "Out
of the Abyss: Growth, Challenges and Opportunities in the Post-Crisis World."
Among the issues he reviewed were the outlook for terrorism in a post–Bin
Laden world, the impact of the Japan earthquake on the insurance
marketplace, and what lies ahead in the road to recovery for the U.S.
economy.
Workers Compensation Regulatory/Legislative Environment
NCCI Senior Division Executive—State Relations Peter Burton, CPCU, AU,
and NCCI Practice Leader and Senior Actuary Jeff Eddinger, FCAS, MAAA,
offered an in-depth review of regulatory and legislative "Regional
Trends." The presentation began with an overview of countrywide
developments and then supplied a state-specific review (grouped by region)
of the current rate changes and legislative initiatives in the jurisdictions
that NCCI serves as the statistical agent.
Focus on Obesity in the Workplace
A major topic highlighted at this year's symposium is the impact of
obesity in the workplace and its downstream impact on workers compensation.
Three presentations looked at various aspects of this troubling trend. Todd
Whitthorne, president and CEO, Cooper Concepts, Inc., presented "Focusing
on Fitter Employees for Thinner Workers Comp Costs"; Michael Vittoria,
VP, human resources, Sperian Protection, submitted "Designing
Workplace Programs to Reduce Obesity and Improve Employee Health," and
NCCI Chief Economist and Practice Leader Harry Shuford offered "The
Costs of Obesity: The Country, the Work Place, Workers Compensation."
Workers Compensation Research Topics
Again this year, the symposium provided a forum for the presentation of
studies related to key workers compensation issues. MAAA Practice Leader and
NCCI Senior Actuary Barry Lipton, FCAS, offered two studies: "Impact
of Industry Mix Changes on Frequency" and "Workers
Compensation Excess Loss Development," while Harry Shuford presented his
findings on "More
Older Workers—Workers Compensation and an Aging Workforce."
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