Tennessee Workers' Compensation Insurance Profitability (2023)
In 2023, Workers' Compensation insurers earned $860.2M in premiums in Tennessee and ran a 40.1% loss ratio — the 39th-highest of 51 states (one of the lowest 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 Tennessee is below 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 Tennessee workers' compensation rates up and thin the field of carriers competing for the business; a lower one signals a more profitable, more competitive market. A 23.4% underwriting profit means the line stood on its own in Tennessee without leaning on investment income. Counting investment income, carriers earned a 33.3% profit on workers' compensation insurance transactions in Tennessee 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.
Tennessee's $860M in workers' compensation premiums is the 22nd-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; Tennessee's 40.1% places it 39th 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, Tennessee is about 1.7% of the $50.5B national workers' compensation market, and its loss-ratio rank places it in the most profitable quartile of states for carrier profitability — context that shapes how aggressively carriers compete for Tennessee workers' compensation business.
Key takeaways
- Tennessee workers' compensation: $860M in 2023 premiums at a 40.1% loss ratio (NAIC).
- That ranks Tennessee 39th of 51 states by loss ratio for the line — a profitable market for carriers.
- 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 Tennessee
See recent Tennessee rate filings on the Tennessee 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.
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