Today’s issue of WorkCompRecap features the California WCIRB’s release of a new study on the impacts of economic cycles on workers’ compensation claim frequency, that provides forecasts of frequency changes in light of the current economic situation and summarizes the potential impact of post-termination and COVID-19 claims on claim frequency.
Key findings included that while many factors influence claim frequency, between 1961-2017, overall frequency decreased modestly more during years of economic recession than during years of expansion. The rate of cumulative trauma (CT) claims increased during downturns, unlike other claim types. Industry sectors that were hit the hardest during the 2001 recession and Great Recession saw claim frequency fall along with job losses or faster during economic downturns compared to expansions.
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