What happens when a key data source becomes less available, reducing carriers’ ability to evaluate risk? This has happened during the pandemic in workers’ compensation.TechnologyWorkers' Compensation
In workers’ compensation, OSHA is one of the top data sources that underwriters use. In particular, underwriters will look at OSHA inspections and violations to measure some aspects of the risk.
Here at Convr, our focus has been to help carriers with the right insights at the right time for better decision-making, and we found, using a vast data pool, that planned inspections dropped 48% in 2020.
One reason is fewer claims; as operational capacity was reduced or suspended for many industries in 2020, workers’ compensation claims dropped by over 20%. As accidents declined, inspections that normally would have followed weren’t needed. In addition, OSHA reduced the number of planned inspections for the safety of their inspectors.