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Workers’
Compensation Policy Review Summary
of the Contents – September/October 2008
Workers’ compensation incurred benefits per
100,000 workers vary significantly among jurisdictions in a particular year as
well as nationally over time. “Workers’
Compensation Incurred Benefits: 1985-2004” by John Burton and Florence Blum
provides information on cash benefits, medical benefits, and total (cash plus
medical) benefits for up to 48 jurisdictions for each of the years between 1985
and 2004.
There have been significant changes in the national averages of total
benefits per 100,000 workers for the same 42 jurisdictions between 1985 and
2004. Benefits increased by at
least five percent a year in the six years from 1985 to 1990, and then declined
in every year in the five years between 1991 and 1995.
Benefits were relatively tranquil in 1996 and 1997, and then increased
substantially in the four years from 1998 to 2001.
Finally, in the most recent three years, benefits generally declined,
with the 5.5 percent decline in total benefits in 2004 representing the sharpest
decline in over a decade.
There were also significant differences in 2004 among jurisdictions in
incurred benefits per 100,000 workers. For
example, three states ( The
second article, “Workers’ Compensation Insurance Industry Profits Remain
High in 2007,” by John Burton provides information on the underwriting results
for the workers’ compensation insurance industry.
The overall operating ratio, which is the most comprehensive measure of
underwriting results because it considers investment income, increased from 86.3
in 2006 to 88.6 in 2007. An
operating ratio of less than 100 indicates that the industry is profitable, and
the results show that 2006 and 2007 were the two most profitable years for the
workers’ compensation insurance industry since 1997. Information
on the Workers’ Compensation Policy
Review
The Workers’ Compensation Policy
Review is published six times a year. Request
for a sample copy or for subscription information can be sent to WCPR,
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