Summary
The attendees of the NCCI Annual Issues Symposium heard NCCI Chief Actuary Dennis C. Mealy report that in 2006 the workers comp line enjoyed "the best combined ratio in over 30 years" -- 96.5%. Considering that a mere five years earlier, the workers comp combined ratio stood at an abysmal 122% in 2001, this is certainly reason for the cautious ebullience that permeated much of the meeting. On the downside, Mealy pointed out that medical cost increases continue largely unabated and put upward pressure on costs. He also noted that the combined ratio for 2006, despite being the best in more than 30 years, did not produce anywhere near record rates of return. One of the interesting topics in recent years has been the impact of the baby boomers in such areas as Social Security, Medicare, health care, and workers comp. Well, at least in workers comp, the impact of the baby boomers is "yesterday's news," according to Mealy.
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Extract
Everything's Comin' Up Roses
It's hard to imagine a gathering of workers comp executives where everyone is smiling, even before the cocktail reception. But that was exactly what happened as the NCCI hosted its Annual Issues Symposium last May in Orlando, Florida. Of course, there were unusual circumstances. There hasn't been this much good news for comp carrier...
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