NCCI Releases 2011 Claims Frequency Research

Posted Date: September 26, 2011
    

Industry InformationResearch

Workers Compensation Claim Frequency 2011

The Great Recession of 2007–2009 is likely the most serious and long lasting economic contraction since the Great Depression. Several factors related to the recession have had a considerable influence on claim frequency. Claim frequency for workers compensation injuries increased 3% in 2010, marking the first increase since 1997. Although claim frequency is up, the good news is that NCCI's latest data reveals that the growth in average indemnity and medical cost per claim slowed in 2010.

2010 Overall Trends

  • Claim frequency for lost-time claims in Accident Year (AY) 2010 was 3% higher than in AY 2009, according to preliminary estimates. Prior to this year's uptick, claim frequency had been declining at an average rate of 4.3% per year since 1990, with the only other increases occurring in 1994 and 1997.
  • A number of recession-related factors may have put upward pressure on the AY 2010 frequency measure, including an increase in new hires as the recovery began to take hold and a possible influx of small lost-time claims that may have been medical-only claims in previous years.
  • For indemnity and medical combined, the change in average cost per lost-time claim was 0% for 2010.