COVID-19 and Workers Compensation – Phase II of the Multibureau Collaboration


November 15, 2022 (BOCA RATON, FL)—The National Council on Compensation Insurance (NCCI), in collaboration with nine other workers compensation (WC) rating bureaus, has jointly 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 to learn more.

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 now.

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