South Dakota Workers' Compensation Insurance Profitability (2023)
In 2023, Workers' Compensation insurers earned $194.1M in premiums in South Dakota and ran a 65.3% loss ratio — the 2nd-highest of 51 states (one of the highest loss ratio for the line).
Source: NAIC 2023 Report on Profitability by Line by State. Loss ratio = incurred losses ÷ premiums earned.
Nationally, Workers' Compensation ran a 45.1% loss ratio in 2023, so South Dakota is above the national average. See how every state compares on the Workers' Compensation market page.
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A higher loss ratio means carriers paid out more of each premium dollar in claims, which tends to push South Dakota workers' compensation rates up and thin the field of carriers competing for the business; a lower one signals a more profitable, more competitive market. With a 4.2% underwriting loss, South Dakota carriers relied on investment income to make the line work in 2023 — a sign of rate pressure ahead. Counting investment income, carriers earned a 8.9% profit on workers' compensation insurance transactions in South Dakota in 2023 — NAIC's broadest profitability measure for the line. Either way, these are industry aggregates — your own workers' compensation rate depends on your business, and the only way to see it is to compare filed rates and real quotes.
South Dakota's $194M in workers' compensation premiums is the 43rd-largest of the 51 states NAIC reports for the line. Across those states, loss ratios span from 72.8% in North Dakota — the toughest market for carriers — down to -3.9% in Ohio, the most profitable; South Dakota's 65.3% places it 2nd of 51. For buyers, a state near the top of that spread usually means firmer workers' compensation pricing and fewer competing carriers, while a state near the bottom tends to run softer and more competitive. By premium, South Dakota is about 0.4% of the $50.5B national workers' compensation market, and its loss-ratio rank places it in the toughest quartile of states for carrier profitability — context that shapes how aggressively carriers compete for South Dakota workers' compensation business.
Key takeaways
- South Dakota workers' compensation: $194M in 2023 premiums at a 65.3% loss ratio (NAIC).
- That ranks South Dakota 2nd of 51 states by loss ratio for the line — carriers struggle here.
- These are industry aggregates, not a quote — your workers' compensation rate depends on your business; compare filed rates and real quotes.
Getting Workers' Compensation coverage in South Dakota
See recent South Dakota rate filings on the South Dakota rate page, learn how Workers' Compensation works in our Workers' Compensation guide, look up the filed loss cost for a specific class code in our workers' comp class code hub, see typical workers' comp costs, then compare real quotes for your business.
Compare South Dakota Workers' Compensation Quotes →