The NCCI released its Workers Compensation Issues Report May 3, 2012, outlining the challenges that the Workers Compensation market continues to face. What particularly stands out in the report is the increase in injury claims frequency in 2010 for the first time in 13 years. After adjusting the data for certain distortions, which initially showed that frequency in injury claims increased by 13%, the NCCI in this report reveals that the actual increase was 3%. Although this rate increase is not as great as initially thought, it’s still of major concern. According to the report, the NCCI will be “watching the frequency situation closely to determine whether the increase is a one- or two-year occurrence (as happened in the early 1980s) or a more permanent and disturbing trend.”

Other challenges to the Workers Comp market include the outcome healthcare reform, which is now in the hands of the Supreme Court, will have on the workers compensation system; the Dodd-Frank Act which could impact regulation over the insurance industry with the newly formed Federal Insurance Office; state gubernatorial elections that will focus on the economy and most likely not be addressing any major Workers Comp reform initiatives; and of course the general health of our economy and whether we’ll be seeing more premiums being generated in the Workers Comp market because of increased wages, a rise in jobs and payroll. Since late 2011, we’ve already been seeing modest rate increase across many coverage lines, with Workers Comp (along with Property) in the lead.

More than 900 insurance carriers and nearly 40 states use NCCI as their licensed rating and statistical organization and look to the organization for information and trends regarding the Workers Comp market. At Apex Services, we have broker partners in each of the 40 NCCI states, helping them with our workers compensation premium recovery service to drive premiums down and recoup past erroneous charges in the face of the challenges that the market faces. This is especially critical now for brokers in obtaining new business and retaining renewal business with premiums increasing as a result of years of a deteriorating market for carriers and the state funds. What’s more, if the data in claims frequency continues to show an upward trend, more industries and the business within these sectors will experience a significant rise in premiums. Apex Services can provide immediate, tangible results to your business clients, in addition to your efforts in assisting clients with safety, compliance, return-to-work programs, and other services.