At the beginning of the pandemic, there was a lot of uncertainty regarding how the COVID-19 virus would impact the Workers’ Compensation industry. Many were concerned that it would negatively affect claims causing them to surge – particularly those within the healthcare industry. The data from 2020 on COVID and Workers’ Compensation claims, though, paints a different picture. When factoring in COVID-19-related claims, the overall claim frequency was relatively unchanged in 2020. However, the annual change is -6.8 percent when those claims are excluded.
After roughly four years of annual increases in country-wide average claim severity, the NCCI saw decreases in Accident Year (AY) 2020. Additionally, the industry saw a 21 percent increase in the frequency of small claims, which amount to less than $5,000. These claims accounted for approximately 25 percent of all AY 2020 claims and almost 90 percent of COVID-19-related claims. Read this article to get a closer look at the changes in Workers’ Compensation claim frequency and severity across industries.
Risk Innovations specializes in Workers’ Compensation and has established relationships with numerous A-rated carriers. Our team of experts is ready to guide you through every facet of finding the right Workers’ Compensation policy to suit your needs. Contact us today to get started.