The workers' compensation market could currently best be characterized as stable, but changes in the nation's workforce—coupled with rapid-fire technological advancements—threaten to upset the balance of the industry.

The industry's financial outlook is positive; however, the National Council for Compensation Insurance (NCCI) warns agents and brokers that the market exhibits "calm now, but turbulence ahead" in its annual "State of the Line" workers' compensation market analysis. During the Florida rate-making and research organization's recent annual conference, NCCI noted the 2014 calendar year combined ratio for the private workers' compensation market was below 100 for the first time since 2006, total net written premium for the year was up 6% to $44.2 billion, and lost time claim frequency dropped by an average 2% among NCCI states.

Among the factors challenging the workers' compensation system are increasing medical costs, threats to the industry's security systems and the changing nature of the workforce. However, many organizations are seeking solutions by leveraging technology to prevent injuries and identify and address high-risk claims.