December 6, 2017

New NCCI Study Examines Relationship Between Accident Report Lag and Claim Cost

Boca Raton, FL – In 2000, a study by The Hartford, using its own data, found that the average cost of a workers compensation claim generally rose as the delay in reporting the claim increased. Effectively managing a workers compensation claim ensures that the injured worker receives their benefits efficiently. But an insurer cannot begin to manage a claim until notice is given that an injury has occurred.

In its latest study, NCCI looks at the relationship between report lag and claim cost using recent industry wide data.

Key Findings

  • The median cost of claims reported between one day and two weeks after an accident is significantly lower than the median cost of claims reported either on the day of the accident (Day 0) or more than two weeks after the accident.
  • The Hartford study found that injuries reported in Week 2 had a higher median cost than claims reported in Week 1. NCCI found a slightly different relationship, which depends on the nature of injury. For sprains and strains and for contusions, the minimum median cost is for claims reported in Week 1. For fractures and lacerations, the minimum median cost is for claims reported in Week 2.
  • Across three-day and seven-day waiting period states, the median claim cost for claims reported in Weeks 1 and 2 is lower than the median claim cost for claims reported on either the day of the accident or more than two weeks after the accident.

Click here to view the full report: NCCI: The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance (PDF)

Source: NCCI

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