There is good news for employers and members of the worker's compensation insurance industry - a recent report indicates that the current climate is more balanced, contributing to more affordable costs, fewer claims and improved operating efficiency.
These positive trends could signal more favorable conditions for employers interested in workers' compensation insurance in the near future. There are many steps one can take to help protect employee safety and reduce costs, and an improved economy and industry will help achieve those goals.
Report shows better results
The National Council on Compensation Insurance, a statistical and rating organization for the workers' compensation industry, recently released a report highlighting the positive trends emerging in this sector. Overall, indications are of a return to a more balanced, normal state.
The NCCI reported that the workers' compensation combined ratio was 101 in 2013, down seven points from 2012 and 14 points below levels experienced in 2011. In addition, this past year witnessed improved underwriting results, a decline in claim frequency and stable increases in claim severity.
"We are finally starting to see an industry in balance with these results," said NCCI president and CEO Steve Klingel. "Today, industry costs are largely contained, claims frequency continues to decline, and the system in most states is operating efficiently. In short, the market is operating as it should on behalf of most stakeholders."
However, NCCI chief actuary Kathy Antonello stated that challenges remain, such as slow employment growth and the potential expiration of the Terrorism Risk Insurance Act.
OSHA announces committee on worker safety
There is more good news out there for the workers' compensation industry. Recently, the U.S. Occupational Safety and Health Administration announced a meeting regarding temporary worker safety, demonstrating a focus on the health and well-being of these employees.
The meeting is scheduled to discuss the issues surrounding temporary workers. At the moment, there have been reported gaps in protection, differences between temporary employees and permanent ones, and a lack of responsibility and communication between the host employer and the staffing agency.
This meeting is a part of the National Advisory Committee on Occupational Safety and Health. This group was established in 1970 to review safety and health programs across the U.S., and ensure that strong efforts were being taken to help employees remain healthy while on the job.
Overall, these new developments are positives for the workers' compensation insurance industry. Better yet, it appears that these trends will continue into the near future, signaling more good times ahead.