Mega comp claims spiked during recession: NCCI report

The frequency of expensive workers compensation claims above $1 million was “significantly impacted” by the recession between 2007 and 2009, according to a report released Thursday by the National Council on Compensation Insurance.

The Boca Raton, Florida-based agency examined the frequency of claims with incurred losses above $1 million in all 36 NCCI states combined over the most recent 15 years along with claim characteristics, such as types of injuries.

In addition to showing a spike in claim frequency at the onset of the last recession, the report also showed that claims involving multiple body part injuries represent close to 40%, the highest share, of claims above the $1 million mark. As for causation, motor vehicle accidents and slips and falls are the cause of about half of all claims above $1 million, the report highlights.

Overall, claims above $1 million account for 10% of losses, but less than 0.2% of all lost-time claim counts, the report stated.