The National Council on Compensation Insurance (NCCI) published their 2026 State of the Line Report, which delivers a review of the workers’ comp system by covering financial indicators, trends, and broad economic markers.

According to the report, workers’ comp net written premium decreased 0.2% in 2025, staying around $41.6 billion. The Calendar Year (CY) 2025 combined ratio for workers comp was 91%, marking 12 consecutive years of underwriting gains. Lost-time claim frequency declined by 2% in 2025, a slower pace of decline than the long-term average decline, and Accident Year (AY) 2025 indemnity claim severity and medical lost-time claim severity were 4% higher.

Workers compensation’s AY 2025 combined ratio is 102%, with prior years continuing to experience downward reserve development. The NCCI estimates a redundant industry reserve position of $14 billion.

While still early and subject to revision, preliminary analysis for private carriers through the second quarter of 2026 shows:

• CY 2026 direct written premium (DWP) decreased 0.4%, compared with the first half of 2025
• The CY 2026 direct loss ratio is 52%, two points higher than the first half of 2025
• The line is expected to have another strong year with continued underwriting gains in 2026 and a net premium volume like that observed in CY 2025