The remaining market for reinsurance claims and reinsurance pools remained broadly stable during the COVID-19 pandemic, but premium volume and market share are expected to decline for the sixth year in a row, according to the National Council on Compensation Insurance 2020 Residual Market Management Summary
By 2020, the combined final premium for all reinsurance pools served by Boca Raton, Florida-based NCCI, is expected to decrease by 9% to $ 790 million, compared to 2019, and the pools are also forecast to see an ultimate Operating profit of $ 47 million and a combined share at 106%, the report revealed.
Remaining market premium volume and market share also continued to decline for the sixth year in a row, while the total 2020 premium in workers comp insurance plans administered by NCCI which includes reinsurance pools and direct commissions ̵
The majority of states with NCCI-serviced reinsurance pools reported net losses – minus any loss adjustment costs – although Arkansas, Delaware, Kansas, Nevada, North Carolina, South Dakota, Tennessee, and Washington, DC, reported net profit.
NCCI, which provides continuing market services in 31 jurisdictions, based its forecasts on a partially earned insurance year.