Intended Use

The calculations presented here model the potential impact to expected losses for the associated jurisdiction and workforce under the scenario framework described in NCCI’s Research Brief:

COVID-19 and Workers Compensation: Modeling Potential Impacts.

Adjust the sliders in rows (1) through (6) to vary the assumptions of the scenario.

NOTE: The model scenario may not include consideration for all potential benefit costs such as permanent disability, mental illness, or employers liability.







THIS INTERACTIVE INFORMATIONAL PAGE AND ANY ANALYSES, ASSUMPTIONS, AND HYPOTHETICAL SCENARIOS CONTAINED HEREIN ARE BEING PROVIDED SOLELY AS A REFERENCE TOOL FOR INFORMATIONAL PURPOSES ONLY AND ARE INTENDED TO PRESENT A MODEL OF THE POTENTIAL IMPACTS TO EXPECTED LOSSESS FOR THE ASSOCIATED JURISDICTION AND WORKFORCE UNDER THE SCENARIO FRAMEWORK DESCRIBED IN NCCI’S RESEARCH BRIEF. THIS INTERACTIVE INFORMATIONAL PAGE IS PROVIDED “AS IS” AND NCCI SHALL HAVE NO LIABILITY FOR ANY ACTIONS TAKEN THROUGH ITS USE. THIS INTERACTIVE INFORMATIONAL PAGE SHALL NOT BE CONSTRUED AS PROVIDING ANY OPINION ABOUT THE COMPENSABILITY OF ANY POTENTIAL CLAIMS OR ANY LOSS COSTS/RATES THAT MAY BE REQUESTED BY NCCI.

    Scenario      
  Row Description Assumption      
(1) Infection Rate 10% Double-click to reset  
(2) Report Rate 50%    
(3) Hospitalization Rate 10%    
(4) Critical Care Rate 15%    
(5) Fatal Rate 0.5%    
(6) Compensability Rate 100%    
(7) Average Fatal Indemnity Benefit1      
(8) Average Salary2      
(9) Pure Premium Factor3      
        Symptom Group  
  Row Description Mild Moderate Severe Overall4
(10) COVID-19 Claim Frequency
    = (1) x (2) x [1.0 – (3)] = (1) x (2) x (3) x [1.0 – (4)] = (1) x (2) x (3) x (4) = (1) x (2)
(11) Wage Replacement Severity1
(12) Medical Severity1
(13) Nonfatal Total Severity= (11) + (12)
           
  Row Description Estimate      
(14)      
(15) Expected Payroll M = (14) x (8)    
(16) COVID-19 Total Severity = (13) Overall + (7) x (5)    
(17) COVID-19 Expected Losses M = (14) x (10) Overall x (6) x (16)    
(18) Expected Losses Without COVID-19 M = (15) / 100 x (9)    
(19) Scenario Expected Losses With COVID-19 M = (17) + (18)    
(20) + = (19) / (18) – 1.0    
           
Displayed values not shown to full precision        
Amounts shown in Rows (8), (14), (15), (17), (18), (19) reflect all private and public employers regardless of how work-related injury costs are funded (e.g., privately insured, self-insured, and employers exempted from WC requirements including Non-Subscribers in Texas)
           
1        
2        
3        
4 Overall (11)–(13) derived as the weighted average of the Mild/Moderate/Severe symptom values