WORKERS COMPENSATION - CURRENT ISSUES - (SESSION WC-3) Barry Lipton, FCAS, MAAA– NCCI Nancy Treitel, FCAS, MAAA– Liberty Mutual Casualty Actuarial Society.

WORKERS COMPENSATION- CURRENT ISSUES -

(SESSION WC-3)

Barry Lipton, FCAS, MAAA – NCCI

Nancy Treitel, FCAS, MAAA – Liberty Mutual

Casualty Actuarial Society2004 Seminar on Ratemaking

Philadelphia, PennsylvaniaMarch 11-12, 2004

2

Line of Business 2002 2003p ChangePersonal Auto 139.6 B$ 149.5 B$ 7.1%

Homeowners 40.0 B$ 44.6 B$ 11.5%

Other Liability (Incl Prod Liab) 30.9 B$ 38.4 B$ 24.1%

Workers Compensation $ 36.5 B 41.4 B$ 13.3%

Commercial Multiple Peril 25.4 B$ 27.9 B$ 9.7%

Commercial Auto 24.6 B$ 26.1 B$ 6.3%

Fire & Allied Lines (Incl EQ) 15.4 B$ 17.1 B$ 11.1%

All Other Lines 66.4 B$ 72.5 B$ 9.2%

Total All Lines 378.9 B$ 417.5 B$ 10.2%

Source: Best’s Aggregates & Averages, Review/Preview

(Includes state funds for: AZ, CA, ID, LA, MD, ME, MN, OR, RI, TX, and UT)

WC Premium Growth Leads Most Other Lines

Net Written Premium by Line

© 2004 National Council on Compensation Insurance, Inc.

3

Line of Business 2001 2002 2003pPersonal Auto 108% 104% 99%

Homeowners 122% 109% 103%

Other Liability (Incl Prod Liab) 130% 137% 121%

Workers Compensation 121% 112% 110%

Commercial Multiple Peril 119% 105% 102%

Commercial Auto 116% 103% 94%

Fire & Allied Lines (Incl EQ) 127% 89% 85%

All Other 115% 105% 92%

Reinsurance Co's 163% 126% N/A

Total All Lines 116% 107% 101%

Combined Ratios Improved in 2003 Net Combined Ratios



(Includes state funds for: AZ, CA, ID, LA, MD, ME, MN, OR, RI, TX, and UT)

4

14.5%

7.0%

9.5%

14.5%

7.5%

9.8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Drug Auto Mfg. (Big 3)

LargeBanks

Retail Life Ins. P/C Ins.(Proj.ROS)

Source: Value-Line, latest estimates as of 1/2004. P/C projected 2003 ROS from Best’s Review/Preview.

Return on Equity for Total P&C Appears In Line With Other Industries

Estimated 2003 After-Tax ROE for Public Companies


5

Workers Compensation Premium VolumeContinues to Grow

Workers Compensation Net Written Premium

34.3 32.7

25.7 24.628.1

31.436.5

41.4

26.527.7

29.5

0

10

20

30

40

50

60

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

0.0

1.0

2.0

3.0

4.0

5.0

WC Net Written Premium ($ B) Private Nonfarm Wages and Salaries ($ T)

$ Billions $ Trillions

Source: Best’s Aggregates & Averages, Review/Preview; Economy.com


6

Large Deductible Growth ContinuesCalendar Year WC Premiums & Premium Equivalents

NCCI States

20.622.3

25.126.8

22.919.9 19.7

18.4 18.417.0

18.721.0

23.3

0

5

10

15

20

25

30

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

$ B

illio

ns

Estimated Large Deductible premium creditLarge Deductible Net premiumNet Earned Premium excluding Large Deductible policies

Source: NCCI Large Deductible study


7

Calendar Year WC Loss Ratio Showing Slight Improvement

Workers Compensation Net Loss Ratios

73

6157 58 58

6268

7479

74 73

40

50

60

70

80

90

100

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

Pe

rce

nt

Source: Best’s Aggregates & Averages, Review/Preview; 9-11 est. from NCCI

1.9 % Due to September 11th.


8

WC Loss Ratios - Impact of Large Deductible Policies

First LargeDollar Deductible

Loss $ 75 $ 15Expense $ 25 $ 23Premium $100 $ 38

Loss Ratio 75% 40%Expense Ratio 25% 60%

9

WC LAE Ratios to Premium Appears to Have Leveled Off

WC Ratio of Loss Adjustment Expense to Net Earned Premiums

12.5 13.1 12.8

14.5 14.2

16.2 16.2 16.0

13.5 13.1 13.1

0

5

10

15

20

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

Pe

rce

nt



10

WC LAE To Loss Ratios In Recent Years Shows Slight Increase

WC Ratio of Loss Adjustment Expense to Losses

17.2

21.7 22.5

25.2 24.626.1

23.821.7

17.1 17.7 18.1

0

5

10

15

20

25

30

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

Pe

rce

nt



11

WC Expense Ratios Continue Slight Decline

WC Ratio of Underwriting Expenses to NWP (Excl Divs)

19.321.0

22.724.9 25.6 26.3

27.525.8 25.0

22.5 21.7

0

5

10

15

20

25

30

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

Pe

rce

nt



12

WC Dividend Ratios Continue to Decline

WC Ratio of Policyholder Dividends to Net Earned Premium

5.0

7.0 6.9

5.46.0

6.6 6.7

5.4

3.5

2.62.3

0.0

2.5

5.0

7.5

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

Pe

rce

nt



13

110102 100 102 104

111119 121 121

112 110

0

20

40

60

80

100

120

140

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Loss LAE Underwriting Expense Dividends

Workers Compensation Calendar Year Combined Ratio Declined in

2003Workers Compensation Combined Ratios


1.9% Due to September 11th


14

17.115.1

17.7 18.6

21.9

18.6

22.421.0

12.811.8 11.9

0

5

10

15

20

25

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

Low WC Investment Returns Continued in 2003

WC Ratio of Investment Gain and OtherIncome to Premium


p PreliminarySource for 1993–2002: A.M. Best Aggregates & Averages; 2003p: NCCI estimate based on data in Best’s Review/PreviewInvestment gain includes investment income on insurance transactions and realized capital gains.

15

7.6

13.5

18.216.2

7.4

3.9

0.2

-0.4

2.4

18.2

-8.1

-15

-10

-5

0

5

10

15

20

25

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year

WC Results in 2003 Improved Over 2002

WC Pretax Operating Gain/Loss Ratio

p PreliminarySource for 1993–2002: A.M. Best Aggregates & Averages; 2003p: NCCI estimate based on data in Best’s Review/PreviewInvestment gain includes investment income on insurance transactions and realized capital gains.


16

109

101

97100

122

104

111

119121

112

101

108

111

115

118

104

121

110

102

100

110

102

90

100

110

120

130

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

PC PC+SFp Preliminary (State Funds include: AZ, CA, ID, LA, MD, ME, MN, OR, RI, TX, and UT)CY 1993-2002 & PC+SF 2003p: Best’s Aggregates & Averages, Review/Preview; PC CY 2003p: NCCI estimateIncludes dividends to policyholders.

Combined Ratio


WC Calendar Year Combined Ratios

Private Carriers Compared toPrivate Carriers + A.M. Best State Funds

17

109

10197

100 101

108

115118

122

111

119

129

137133

125

107104

101

106

101

9597

90

100

110

120

130

140

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003p

Calendar Year Accident Yearp PreliminaryCY 1993-2002: Best’s Aggregates & Averages; AY 1993-2002: NCCI; CY & AY 2003p: NCCI estimatesAccident year data is evaluated as of 12/31/2002 and developed to ultimate.Includes dividends to policyholders.

Combined Ratio in AY 2002 Continued to Improve

WC Calendar Year vs. Ultimate Accident YearCountrywide - Private Carriers

Combined Ratio


18

What Have Been The Key Factors Impacting Workers Compensation Results?

• Carrier Reserves

• Carrier Pricing

• Loss Severity Trends (especially Medical)

• Frequency Trends

• Investments


19

Workers Compensation Reserve Strengthening Continues

Dollar Amount of Reserve Adjustments on Prior AYsWC Countrywide—Net—Private Carriers

1.8

3.2 3.2

0.6

-1.8-2.7

-2.0 -2.2-1.4

-0.4

2.2 2.0

0.4

-5

-3

-1

1

3

5

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Calendar Year

$Bill

ion

s

Loss and LAE reserves.


20

Reserve Releases Have Partially Offset the Upward Development on More Recent

Accident Years for WC

Accident Year Loss Ratios Including LAE

82%80%

78% 77%79%

81%84% 83% 83%

75%

83%

90% 91%

68%67% 66%

72%

83%

95%

65%

70%

75%

80%

85%

90%

95%

100%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Accident Year

Lo

ss

an

d L

AE

Ra

tio

At First Report As of 12/02

Reserve Releases

Reported Loss and LAE reserves from Schedule P.© 2004 National Council on Compensation Insurance, Inc.

21

How Are Final WC Premiums Determined?

ADVISORY ORGANIZATION

Advisory Loss Costs

Assigned Risk Rates

Experience Rating Values

Experience Mods

Rating Plans and Classifications

INSURANCE COMPANY

Final Rate Determination:

– Expense Multiplier

– Loss Cost Deviations

Individual Risk Modifications:

– Schedule Rating

– Retrospective Rating


22

Following Six Years of Decreases, the Average Approved Bureau Rate/Loss Cost Changes Have

Been Increases for the Last Three YearsHistory of Average WC Bureau Rate/Loss Cost Level Changes

6.1

12.1

7.4

10.0

2.9

-6.4

-3.2

-6.0-8.0

-5.4

-2.6

3.5

1.2

6.6

-3.5

4.9

-10

-6

-2

2

6

10

14

Calendar Year

Pe

rce

nt

Cumulative 1990-1993

+36.2%

Cumulative 1994-1999

-27.7%

p Preliminary (states approved to date in 2004).Countrywide approved changes in advisory rates, loss costs and assigned risk rates as filed by the applicable rating organization. The countrywide change is a weighted average of individual state changes based on state premium volumes and ignoring effective dates. © 2004 National Council on Compensation Insurance, Inc.

Cumulative 2000-2003+17.0%

23

-7.1 -7.5 -7.0-8.5

-10.4

-14.6-17.7

-22.6 -23.2

-19.2

-14.2

-6.0

-30

-25

-20

-15

-10

-5

0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Policy Year

Pe

rce

nt

Rate/Loss Cost Departure Schedule Rating Dividends

Impact of Discounting on WC Premium

NCCI States—Private Carriers

Based on data through 12/31/02 for the states where NCCI provides ratemaking services.Dividend ratios are based on calendar year statistics.


24

Loss Cost = f (customer, company, and/or industry losses,inflation, interest rate, medicaltechnology, economy, etc.)

+ Risk Charge + Expenses + Tax Premium

What are Some Key Components and Factors for WC Premiums?

25

$9

.7

$9

.4

$9

.1

$9

.6

$9

.7

$1

0.3

$1

1.0

$1

1.8

$1

2.8

$1

4.2

$1

5.2

$1

6.1+1.0% +1.7%

+5.9%+6.9%

+7.3%

+8.3%

+10.5%

+7.3%+6.0%

-3.1% -2.8%+4.9%

5

7

9

11

13

15

17

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Accident Year

Av

era

ge

Ind

em

nit

y C

laim

Co

st

pe

r L

os

t-T

ime

Cla

im (

00

0s

)

Annual Change 1991–1995: +0.3%


The Rate of Change in Workers Compensation Indemnity Claim Costs

Has Accelerated Since 1995

Based on data through 12/31/02, developed to ultimate.Based on the states where NCCI provides ratemaking services.Excludes the effects of deductible policies.


26

2.8% 2.8%

4.1%4.7%

4.2%4.9%

4.2%

2.2%1.7%

5.9%6.9% 7.3%

8.3%

10.5%

7.3%

6.0%

0%

2%

4%

6%

8%

10%

12%

1995 1996 1997 1998 1999 2000 2001 2002

Year

Change in CPS wage Change in Indemnity Cost Per Lost Time Claim

WC Indemnity Severity Is Outpacing Wage Inflation

Source for Indemnity Severity: NCCI, based on data through 12/31/02.Based on the states where NCCI provides ratemaking services, excludes the effects of deductible policies.Source for CPS (Current Population Survey): Economy.com as of Feb 2004


27

$7

.9

$8

.0

$7

.8

$8

.5

$8

.9

$9

.6

$1

0.3

$1

1.1

$1

2.0

$1

3.1

$1

4.7

$1

6.3

+6.8% +1.3%

+5.1%+7.4%

+7.7%+7.3%

+8.7%

+9.0%

+12.0%

+11.0%

-2.1%+9.0%

5

7

9

11

13

15

17

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Accident Year

Av

era

ge

Me

dic

al C

laim

Co

st

pe

r L

os

t-T

ime

Cla

im (

00

0s

) Workers Compensation Medical Claim

Cost Trends Continue to Accelerate





28

4.5%3.5%

2.8% 3.2% 3.5%4.1%

4.6% 4.7%5.1%

7.4% 7.7% 7.3%

8.7% 9.0%

12.0%11.0%

0%

2%

4%

6%

8%

10%

12%

14%

1995 1996 1997 1998 1999 2000 2001 2002

Year

Per

cent

Change in Medical CPI Change in Medical Cost Per Lost Time Claim

WC Medical Severity Has Also Been Growing Faster than the Medical CPI

Source for Medical Severity: NCCI, based on data through 12/31/02, developed to ultimate.Based on the states where NCCI provides ratemaking services, excludes the effects of deductible policies.Source for Medical CPI: Economy.com as of Feb 2004


29

18 17 1718 19

2021

2325

2730

32

0

5

10

15

20

25

30

35

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Accident Year

Av

era

ge

Cla

im C

os

t p

er

Lo

st-

Tim

e C

laim

(0

00

s)

Indemnity Medical

WC Medical Losses Eclipsed Half of Total WC Losses

NCCI States—Private Carriers


2002

Medical: 50.3%

Indemnity: 49.7%

1991

Medical: 44.7%

Indemnity: 55.3%


30

NCCI Prescription Drug Study

• In 2001, workers compensation insurers paid roughly 75% more than group health for the same drugs

• Prescription drug share of medical costs in workers compensation grew from 7% in Accident Year 1997 to approximately 10% in Accident Year 2001

• Utilization has a greater impact than price on workers compensation drug costs

• Savings opportunities from using generic equivalents are present for less than 10% of total drug costs

• Painkillers represent 55% of workers compensation drug costs


31

The Impact of Inflation is More Sensitive on Excess Policies

Year 1 Year 2 Change

Gross Loss $360,000 $385,200 7%

Deductible $250,000 $250,000 -

Excess Loss $110,000 $135,200 23%

32

• Consider a 25-year old quadriplegic• Indemnity benefits of $23,500 a year• 24-hour attendant care costs of $135,000 a year• Other medical costs of $72,500 a year• These costs continue until death

With Medical Technology,How Big Can a WC Claim Become?

Medical Inflation Rate

5% 7% 9%

45 $7 $8 $8

60 $16 $20 $27

75 $33 $49 $82

90 $64 $118 $266

Age at Death

$ amounts are in millions.Attendant care assumed to increase at 3% per year

33

-4.2% -4.4%

-9.2%

0.3%

-6.5%

-4.5%

0.5%

-3.9%

-2.3%

-4.4%-3.7%

-6.8%

-10%

-8%

-6%

-4%

-2%

0%

2%

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Accident Year

Ch

an

ge

in F

req

ue

nc

yp

er

10

0 W

ork

ers

Cumulative Change of –39.7%(1990-2002)


The Frequency of Lost-Time Claims Has Continued to Fall Through 2002

Workers Compensation


34

Workers Compensation Frequency Trends

Workers Compensation Frequency is Composed of Two Key Components:

• Long-term improving trend due to working conditions

• Short-term cyclical behavior that correlates with the economy


35

Rate of Work-Related Injuries Decreases Over Time Due to Improved Working

Conditions

0

5

10

15

20

25

1926

1929

1932

1935

1938

1941

1944

1947

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

Injuries and Illness per 100 Full-time Workers Private Industry

Trend Line

Injuries and Illness per 100 Full-time Workers Manufacturing

Trend Line


Source: Bureau of Labor Statistics and Federal Reserve Bank of Dallas

36

Workplace Injury Incidence Rates— Decreases During Recessions and

Increases in Recovery

Countrywide—Six Recessions Since 1960

0

5

10

15

20

25

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

Inc

ide

nc

e R

ate

s

Pe

r 1

00

FT

E W

ork

ers

Recessions

Injuries and illnesses per 100 full-time workers in manufacturing

Injuries and illnesses per 100 full-time workers in private industry


Source: Bureau of Labor Statistics and National Bureau of Economic Research

37

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

$0 - $2,000 $2,001 - $10,000 $10,001 - $50,000 $50,001 +

Cla

im F

req

ue

nc

y P

er

$1

M

of

Wa

ge

Ad

jus

ted

Pa

yro

ll

Policies expiring in 1997 * Policies expiring in 2001 **

-40% +15%-3%-19%

Frequency by Loss RangeWithout Inflation Adjustment

(Lost Time Claims)

Source: NCCI* Actual policy expiration between 9/30/1996 and 8/31/1997** Actual policy expiration between 9/30/2000 and 8/31/2001

Percent Change Between Policies Expiring in 1997 and 2001


38

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

$0 - $2,000 $2,001 - $10,000 $10,001 - $50,000 $50,001 +

Cla

im F

req

ue

nc

y P

er

$1

M

of

Wa

ge

Ad

jus

ted

Pa

yro

ll

Policies expiring in 1997 * Policies expiring in 2001 **

-35% -8%-8%-18%

Frequency by Loss RangeWith Inflation Adjustment

(Lost Time Claims)

Source: NCCI* Actual policy expiration between 9/30/1996 and 8/31/1997** Actual policy expiration between 9/30/2000 and 8/31/2001Loss ranges have been adjusted for indemnity (4%) and medical (3%) inflation.

Percent Change Between Policies Expiring in 1997 and 2001


39

7.1%

-3.4%

1.8%

7.8%

3.1%

6.0%4.9%

2.1%

4.4%

-4%

-2%

0%

2%

4%

6%

8%

10%

1994 1995 1996 1997 1998 1999 2000 2001 2002

Accident Year

Ch

an

ge

in

Co

sts

pe

r W

ork

er



The Annual Change in Lost-TimeClaim Costs per Worker Continued to

Increase in 2002 Workers Compensation

40

What Are Today’s Key Issues in Workers Compensation?

• WC Medical Inflation

• Growth in Residual Markets

• Expiration of Terrorism Risk Insurance Act (TRIA) 12/31/2005

• Insurer and Reinsurer Downgrades, Insolvencies, and Consolidations

• Legislative Issues

41

1.2

2.12.6 2.8

3.54.0

4.44.8

4.1

3.1

2.0

1.00.6 0.3 0.3 0.4

0123456

85 86 87 88* 89* 90* 91* 92* 93 94 95 96 97 98 99 00 01 02**03**

Policy Year

$ B

illio

ns

$1.1B

$626M

* Excludes Maine Residual Market Pool.** Incomplete PY Projected to Ultimate

$1. 4B


WC Residual Market Premium Increased

as of September 30, 2003

42

117 118 115 116 113114

102989497

103111

127

142

159166169165

177

80

100

120

140

160

180

200

85 86 87 88* 89* 90* 91* 92* 93 94 95 96 97 98 99 00 01 02** 03**

Policy Year

Pe

rce

nt

WC Residual Market Combined Ratiosas of September 30, 2003



43

-936

-1,369

-1,802-1,883

-2,072

-1,674

-1,176

-542

-125

100 11621

-47 -64 -96 -169 -190-45-13

-2,500

-2,000

-1,500

-1,000

-500

0

500

85 86 87 88* 89* 90* 91* 92* 93 94 95 96 97 98 99 00 01 02** 03**

Policy Year

$ M

illi

on

sWC Residual Market

Underwriting Results Show Slight Deterioration

as of September 30, 2003



44

Unique Challenges of Workers Compensation and Terrorism

Coverage

• Coverage mandated by law, exclusions are not possible

• Benefits are defined by law, limits aren’t possible

• Risks that aren’t written voluntarily will be backed by the entire market through the involuntary pool

• Terrorism Risk Insurance Act (TRIA) expires 12/31/2005– Government backstop goes away, unless Congress

renews– Any policy effective after 1/1/2005 has exposure– NCCI developing filing strategy

45

Impacts of Insolvencies and Market Concentration

• Market Concentration-has accelerated since 1992

• Only three of the top 10 groups of 20 years ago remain in the top 10 today

• Insolvencies continue to be an issue

– Impact remaining insurers

– Create cash flow problems for states due to caps on annual recoupment from insurers

– Impact allocation of Pool results to carriers – resulted in redistributions of over $84M to the residual market pool members in 2003

– Create data problems for advisory organizations

46

Legislative UpdateIssues and Trends

2003 Session Overview

• Most active session since the mid-1990s

• Over 1000 bills introduced, more than 150 enacted

• Many proposals for benefit increases, but few enacted

• State budget issues abound

• Many new governors, legislators and regulators

47

• Medical cost controls

• Expanded presumption of compensability for safety workers and emergency responders

• Clarification of coverage for adverse reactions to smallpox vaccine

• Medical Privacy

• Indemnity benefit increases

• Attorney fees


2003 Key Themes

48

• California

− Significant reforms signed into law 9/30/03 aimed at controlling medical costs. Included fee schedule changes, medical utilization controls, and repeal of voc rehab. WCRIB estimated impact on 2004 Pure Premium Rate Level -13.3% to -15.7%

• Florida

− SB 50A: numerous benefit changes resulting in –14.0% impact effective 10/01/03

− Medical fee schedule changes went into effect 01/01/04

• Maryland

− Attorney fees, hospital fees, MD Supreme Court decision (Harris) with combined impact of +6.0%

Legislative Update2003 Key Enacted Legislation

49

• Montana

− Indemnity benefits, Montana court case (Stavenjord) with combined impact of +6.2% effective 7/1/03

• Nevada

− Adoption of the 5th edition of the AMA Guides, introduction of COLA for PT claims, combined impact of +3.4%

• New Mexico

− Indemnity benefits, attorney fees and medical fee schedule changes with combined impact of +6.1% effective 7/1/03

• Oregon

− Complete overhaul of PPD system to become effective in 2005

Legislative Update2003 Key Enacted Legislation (cont’d)

50

• Employer vs Employee Choice of Physician

• Erosion of Exclusive Remedy

• Medical Fee Schedules

• Attorney Fees

• Indemnity Benefit Increases

• Second Injury Funds

• Containing Medical Costs


2004 Emerging Themes

51

Workers Compensation Key Issues for the Future

• How will the industry deal with terrorism exposure? And will the government renew TRIA?

• Will severity trends continue to accelerate or start to moderate?

• Will written premiums continue to increase?

• What impact will changes in the economy have, especially on frequency?

• What impact will reserve deficiencies have on results?

• Will potential threats to rollback reforms or expand benefits succeed?

• Where are investment returns headed?


WORKERS COMPENSATION- CURRENT ISSUES -

(SESSION WC-3)

Q & A

WORKERS COMPENSATION - CURRENT ISSUES - (SESSION WC-3) Barry Lipton, FCAS, MAAA– NCCI Nancy Treitel, FCAS, MAAA– Liberty Mutual Casualty Actuarial Society.

Documents

compensation insurance

national council

bests reviewpreview

bests aggregates averages

wc expense ratios

wc premium growth

wc lae ratios

wc loss ratios impact