COVID's impact on the residual workers' comp market

To date, around 80% of these claims were under $10,000. However, a few notable incidents resulted in very large claims, with $630,000 being the highest, NCCI reported. (Credit: Gorodenkoff/stock.adobe.com)

In 2019, the workers’ compensation residual market was flashing positive signs, as combined ratios neared break-even territory and market share reached 7% after five years of declines, according to the National Council on Compensation Insurance (NCCI). As we know, the year that followed offered much turmoil and unpredictability.

While a view of COVID-19′s full impact will be partially obstructed as the consequences seen and unseen continue to emerge, NCCI did note the workers’ comp residual market is showing stability. More than 85% of policies have premiums of $5,000 or less, with around three-quarters ranging from $0-$2,400. This is in line with results from previous years.