The workers' compensation insurance market in the U.S. is showing signs of financial health. While premium growth slowed down to just 1% in 2023 compared to the prior year, it remains the most profitable insurance category with a combined ratio well below 100. This ratio indicates that insurers are paying out less than $1 for every $1 they collect in premiums. Lost-time claims are also declining, likely due to improvements in workplace safety. Technology is playing an increasing role in safety initiatives, with potential to further reduce injuries. Claim severity did see a moderate increase in 2023, but this was partially offset by a decrease in inpatient costs due to a shift toward outpatient surgeries. Lower pharmacy costs, driven by less opioid prescribing and more generic drug use, have also contributed to overall cost savings. Overall, the report paints a picture of a stable and financially sound workers' compensation market.