Underwriting results for the workers’ compensation insurance industry improved for the third year in a row, as discussed by Elizabeth Yates and John Burton.  As shown in Figure A, the overall operating ratio, which is the most comprehensive measure of underwriting experience because it considers investment income, was 93.7 in 2004.  This is a clear improvement from the overall operating ratios of 100.3 in 2002 and 98.4 in 2003.    

When the overall operating ratio is greater than 100, carriers lose money even when investment income is considered.  Conversely, an overall operating ratio of less than 100 means the industry is profitable when investment income is included.  While the results for 2004 represent a significant improvement for the industry, the level of profitability of the mid-1990s has not been achieved.

The Institute for Work & Health (IWH), located in Toronto, conducts and shares research that promotes, protects, and improves the health of working people.  Sandra Sinclair provides a report on the research and knowledge transfer activities of the IWH, which are far-ranging.  Among the topics of ongoing interest to the IWH are the behavioral consequences for workers and employers of insurance and regulation; the measurement of work disability; the prevention of neck and back pain; and the effectiveness of return-to-work interventions.

Information on Workers’ Compensation Policy Review

Workers’ Compensation Policy Review is published six times a year. Requests for a sample copy or for subscription information can be sent by mail to WCPR, 56 Primrose Circle, Princeton, NJ 08540-9416; by FAX to 732-274-0678; or by filling out our online form.