Several Great Recession factors may have caused a sudden halt in the trend of decreasing frequency of workers compensation claims, according to NCCI Holdings Inc. research.
Modest increases in employment since the recession formally ended in mid-2009 and workers possibly being less fearful of losing their jobs for filing claims may have contributed to a 3% rise in the frequency of lost-time claims during accident year 2010, NCCI said in its research brief.
Prior to 2010, the frequency of comp claims had declined an average of 4.3% per year since 1990, with the only other increases occurring in 1994 and 1997.
“Reductions in claim frequency have been a major bright spot for workers compensation,” with injury rates falling a total of 56.4% from 1990 through 2009, the rating and research organization said.
An increase in employment drives claims frequency because new hires generally file more claims than longer-term employees, NCCI noted.
There also is evidence of an influx of small lost-time claims during 2010, which may have been medical-only claims in previous years, NCCI said. But a lack of available light-duty jobs to which injured workers could return because of the recession might have changed that dynamic.
It remains to be seen if the 2010 frequency uptick is part of a new normal or a minor blip in the long-term decline in frequency, NCCI said.
While frequency is up, growth in average indemnity and medical cost per claim slowed in 2010, the NCCI analysis added.