Reduced Loss Ratio, Cost a Big Part of Work Comp 2012 Performance

By David Dankwa, Senior ReporterProfit gains recorded by workers’ compensation insurers in 2012 were largely driven by improvement in the loss ratio, which dropped to its lowest level in four years.According to the National Council on Compensation Insurance, the calendar year loss ratio – the ratio of net incurred losses to earned premium for private carriers – declined to 66%, from 70.8% in 2012.In addition, claims frequency declined in various industry groups, including 11.8% for manufacturing, 10.5% for office and clerical, 9.3% for contracting and 6.3% for goods and servi...