Search
 

Data Shows Workers' Compensation Residual Markets Operated Effectively in 2009

At the NCCI 2010 Annual Issues Symposium, CEO Steve Klingel reported that deteriorating underwriting results put the workers' compensation insurance industry in a precarious position.

By James R. Nau | Updated on June 16, 2010

At the National Council on Compensation Insurance’s (NCCI) 2010 Annual Issues Symposium, NCCI CEO Steve Klingel reported that deteriorating underwriting results, combined with a record low interest rate environment, uncertainty about the economic recovery, and the long term impact of the new federal health-care law put the workers’ compensation insurance industry in a precarious position. All of these concerns rightly shine a spotlight on the workers’ compensation residual markets. Fortunately, these markets have operated well in recent years.

One of NCCI’s core functions is to act as the administrator of the state workers’ compensation residual market insurance plans and the reinsurance pools. The plans are the basic instrument through which eligible employers who would otherwise be unable to obtain necessary insurance coverage can secure workers’ compensation insurance. The plans include the state-approved rules that govern the assignment, administration, eligibility and policy issuance requirements. NCCI administers plans on behalf of insurance regulatory authorities in 21 jurisdictions.

While the plans provide the mechanism to distribute employers equitably among participating insurance carriers, the pools are a series of financial reinsurance agreements among workers’ compensation insurance companies to share in the operating results of the state insurance plans. The largest of these pooling arrangements is the National Workers’ Compensation Reinsurance pooling mechanism.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.