The National Council on Compensation Insurance (NCCI) is an organization in the United States that collects and analyzes

workers’ compensation Workers' compensation or workers' comp is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her emp ...

insurance data. It provides rate recommendations, evaluates legislative proposals, and supports the administration of state workers’ compensation systems. The

U.S. Department of Labor The United States Department of Labor (DOL) is one of the executive departments of the U.S. federal government. It is responsible for the administration of federal laws governing occupational safety and health, wage and hour standards, unem ...

describes NCCI as managing the nation’s largest database of workers’ compensation insurance information. NCCI also produces manuals used in many states to help determine workers’ compensation insurance premiums, including the ''Basic Manual'', ''Experience Rating Manual'', and the ''Scopes Manual''. It calculates experience modification factors using employer loss and payroll data reported by insurers in the states where it operates. Headquartered in Boca Raton, Florida, the organization is overseen by a board of directors representing affiliated insurers and other stakeholders.

History

In 2024, the NCCI recommended reductions in

premium rates across multiple U.S. states. These recommendations reflected broader national trends, including reduced claims severity, improved workplace safety through automation, better hiring practices, strategies to return injured employees to work, and increased investment in employer safety programs. One such filing, in Connecticut, was approved by the state’s insurance regulator and reported by ''

Reuters Reuters ( ) is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages. Reuters is one of the largest news agencies in the world. The agency ...

'' as part of wider industry developments. In May 2025, ''Insurance Journal'' reported that the NCCI attributed cost management in the workers’ compensation system to medical fee schedules and data-driven decision-making. NCCI stated that combined ratios have remained below 100 due to three primary trends: continued long-term declines in frequency, moderate severity, and growing wages. In its "2025 State of the Line" report, the NCCI stated that U.S. workers’ compensation net premium fell by 3 percent in 2024, with a combined ratio of 86, the same as in 2023. As reported by ''Insurance Journal'', 2024 also saw a 5 percent decline in lost-time claim frequency, while medical and

indemnity In contract law, an indemnity is a contractual obligation of one party (the ''indemnitor'') to compensate the loss incurred by another party (the ''indemnitee'') due to the relevant acts of the indemnitor or any other party. The duty to indemni ...

claim severity each increased by 6 percent. The report noted that although overall claim frequency has declined in recent years, industry-specific patterns vary; for example, the private education sector saw an increase in injuries categorized as “struck or injured by”.{{Cite web , date=15 May 2025 , title=Workers' Comp Premiums Fall 3% in 2024; Combined Ratio Holds at 86: NCCI , url=https://www.insurancejournal.com/news/national/2025/05/15/823850.htm , access-date=21 May 2025 , website=Insurance Journal

External links

NCCI website

References

Insurance in the United States Workers' compensation