October/November 2022  Volume 20, Number 5        
 

State of US Workers Compensation Industry

The following key insights are from the National Council on Compensation Insurance’s annual report on the state of the workers comp industry:

  • The workers compensation line is strong and healthy.
  • The system saw its eighth consecutive year of underwriting profitability with a calendar year combined ratio of 87, outperforming other property-casualty lines.
  • Net written premiums rose about 1% in 2021.
  • Lost time claim frequency data suggests the long-term decline continues, despite a rise in frequency in 2021. Since 2019, frequency has declined slightly.
  • There is no change expected in medical and indemnity claims severity in 2021.
  • There are potential challenges ahead as medical costs could experience inflationary pressure.
  • Workers compensation reserves are robust. Reserves grew to $16 billion redundant as of year-end 2021.

COVID-19 Update Key Insights

  • The number of COVID-19 claims declined in 2021 with indemnity-only claims making up more than 50% of those claims.
  • Most COVID claims continue to be small. However, claims of more than $100,000 account for 1.2% of claims and 66% of losses. Nearly half of the most complex claims—those of more than $500,000—involved workers who died.
  • Healthcare workers remain the most impacted by COVID-19 even as the number of impacted workers in nursing/convalescent homes declined substantially in 2021.related injuries and illnesses.

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In this issue:

This Just In...Work Comp Laws Get COVID-19 Fatigue

Will the Inflation Reduction Act Increase or Lower Workers Comp Costs?

How to Improve Workplace Ergonomics

How Loss of Consortium Can Shield Workers Comp Awards from Subrogation

State of US Workers Compensation Industry

 

 


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