Workers Compensation Claim Frequency 2012 - Update

Posted Date: July 12, 2012

Claim frequency declined in 2011, albeit by a modest 1%. NCCI will continue to monitor the situation closely to see whether frequency will return to its historical long-term rate of decline.

Key Findings

2011 Overall Trends

  • Prior to the 2010 uptick of 3%, claim frequency had been declining at an average rate of more than 4% per year since 1990. According to preliminary estimates, lost-time claim frequency once again declined in 2011 by 1%.
  • For indemnity and medical combined, the average cost per lost-time claim increased 3.2% in 2011.

Frequency Per Payroll vs. Per Premium

  • Claim frequency measured relative to payroll (frequency per payroll) varies far more by class than frequency measured relative to premium (frequency per premium).
  • Hence, changes in industry mix typically have a greater impact on frequency per payroll than on frequency per premium measures.
  • The decline in the construction industry resulting from the recession put downward pressure on frequency per payroll and upward pressure on frequency per premium.