In 2005, the workers' compensation line of insurance enjoyed success in each measure of financial performance. Even the workers' compensation calendar year combined ratio, which has stubbornly remained higher than most other major lines of insurance during this recovery cycle, has finally improved to a range that allows the industry to show a reasonable (if not outstanding) return on the surplus supporting the business. In fact, workers' compensation was the only major line of insurance that had an improved combined ratio in 2005.

That is not to say there are not ongoing market issues that workers' compensation executives will need to continue to address. These issues include:

Passing and maintaining legislative reform initiatives