NCCI recently released a new report that provides an overview of countrywide changes in lost-time claim frequency and severity -- analysis includes jurisdictions where NCCI provides ratemaking services.
The COVID-19 pandemic and its economic impacts have had both direct and indirect effects on the workers compensation industry. There are more remote and shortâ€tenured workers in the workplace, and there has been a shift in the overall industry mix. These factors, among others, impact the overall frequency and severity of workers compensation (WC) claims.
Key findings included:
Countrywide frequency (including COVIDâ€19 claims) increased by nearly 3% in Accident Year (AY) 2021 after remaining relatively flat between 2019 and 2020.
AY 2021 results are preliminary and do not reflect a complete year of data.
The frequency of lostâ€time COVIDâ€19 claims decreased in 2021, while nonâ€COVIDâ€19 claims saw a resurgence in 2021 following the atypically large drop in frequency that occurred in 2020.
Countrywide frequency (excluding COVIDâ€19 claims) also increased in AY 2021.
The preliminary 2021 projections from NCCI’s Annual Insights Symposium (AIS), excluding COVIDâ€19 experience, indicated a slight decline in lostâ€time claim frequency between AY 2019 and AY 2021.
The preliminary frequency change observed in this analysis for the twoâ€year period from AY 2019 to AY 2021 is relatively flat.
NCCI expects that longâ€term downward frequency trends will continue.
Countrywide severity (including COVIDâ€19 claims) increased between AY 2020 and 2021.
The increase in severity was slight (approximately 1%). There were fewer COVIDâ€19 claims in AY 2021, which tend to be less costly than nonâ€COVIDâ€19 claims.
Countrywide severity (excluding COVIDâ€19 claims) decreased between AY 2020 and 2021, nearly 3%.
The report comes both in PDF and an interactive HTML format.