Workers' compensation experienced another strong year in 2023, marking a decade of profitability for private carriers, according to the National Council on Compensation Insurance (NCCI).

Private workers' compensation carriers achieved a combined ratio of 86 for the 2023 calendar year, making it the seventh consecutive year the combined ratio stayed below 90, based on NCCI's data. Workers' compensation premiums rose to $43 billion, a 1% increase from 2022. Additionally, the sector's reserve redundancy expanded to $18 billion.

The voluntary market carriers demonstrated their strength as the residual market's share of the workers' compensation line continued to decline, dropping from 6.1% in 2022 to 5% in 2023. Comparatively, the residual market held a 12.5% share in 2003, according to NCCI data.

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Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]