Boca Raton, FL – The National Council on Compensation Insurance (NCCI), in collaboration with nine other workers compensation (WC) rating bureaus, recently released phase II of COVID-19 and Workers Compensation (WC).
This updated study includes two years of claims data—Accident Years (AY) 2020 and 2021 through year-end 2021—from the following WC bureaus: California, Delaware, Indiana, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Wisconsin, and NCCI. One result of this effort is the creation of a COVID-19 claims database, which includes a comprehensive view of COVID-19 claim characteristics and trends. The analysis does not include experience from self-insured employers or denial and expense-only claims.
Key findings:
- This analysis relied on data from 45 jurisdictions, representing $1.1 billion in COVID-19-related losses from about 117,000 claims. The average claim cost during the two-year period was approximately $9,600.
- On average, COVID-19 claims decreased from 11% of WC lost-time claims reported in AY 2020 to 4% in AY 2021 across the jurisdictions included in the study.
- Approximately 75% of reported COVID-19 lost-time claims were from the healthcare sector, while that sector only accounts for about 9% of non-COVID-19 lost-time claims.
- Indemnity-only claims, while uncommon for non-COVID-19 claims, continued to represent the largest share of COVID-19 claims. On average, these claims for lost wages are less costly, accounting for a relatively small share of overall losses.
This updated report confirms significant findings from our 2020 report and includes additional insights on industry sector and accident-quarter metrics. Claim and loss activity varied across jurisdictions, impacting individual states and sectors differently and at varying times. Uncertainties remain about the long-term impact of COVID-19.
Read the full report: Multibureau COVID-19 and Workers’ Compensation Report – Phase II (PDF)
Save the Date: Wednesday, January 18, 2023, at 2:00 p.m. ET
Several independent bureaus and NCCI will host an insightful webinar on information derived from this collaborative study. Register here.
Source: NCCI