(Boca Raton, FL, December 15, 2021)—The National Council on Compensation Insurance (NCCI), in collaboration with a number of other workers compensation rating bureaus, has released a comprehensive analysis on
To better understand the pandemic’s impact on the workers compensation (WC) industry, a cross-bureau collaborative effort was made to analyze COVID-19 claims characteristics, including representation from the following WC bureaus: California, Delaware, Indiana, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Wisconsin, and the National Council on Compensation Insurance (NCCI). The analysis does not include experience from self-insured employers or denial and expense-only claims.
Claim and loss activity during 2020 as of year-end 2020 varies across jurisdictions, indicative of how the pandemic impacted individual states differently and at varying times. The early evaluation of the emergence of COVID-19 claims includes many uncertainties.
Key findings in the study include:
- For the 45 states included in this analysis, COVID-19 claims represent 11.0% of total claims counts and 3.5% of incurred losses.
- Indemnity-only claims emerged as a significant share of reported COVID-19 claims.
- In aggregate, COVID-19 claims that remained open have relatively higher case reserves due to the uncertainty of COVID-19 infections, later than average accident dates, and timing of the various waves of the pandemic.
- COVID-19 indemnity claims closed more quickly than non-COVID-19 indemnity claims, partly driven by the large share of indemnity-only claims.
- Despite the higher closure rate, the ratio of paid to paid + case losses on COVID-19 claims is lower when compared with that for non-COVID-19 claims.
full report to learn more.
Research Forum Webinar:
Thursday, January 20, 2022, at 2:30 p.m. ET (11:30 a.m. PT)
Join several independent bureaus and NCCI for an engaging and enlightening webinar to better understand how COVID-19 has impacted the American workforce since March 2020. During this discussion, you’ll learn about the multi-bureau collaboration on COVID-19 claims data that offers a more comprehensive view of COVID-19 claim characteristics and trends. The webinar is available at no cost and open to everyone.
Founded in 1923, the mission of the National Council on Compensation Insurance (NCCI) is to foster a healthy workers compensation system. In support of this mission, NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations. These activities—combined with a comprehensive set of tools and services—make NCCI the source you trust for workers compensation information.