NCCI launches tool to estimate pandemic impact on compPosted On: May. 1, 2020 1:49 PM CST
The National Council for Compensation Insurance on Friday launched an online tool designed to help states and employers calculate the impact COVID-19 could have on workers compensation.
The tool allows users to adjust variables such as job classifications and infection rates to model the potential impact on expected losses for a jurisdiction and workforce, according to Boca Raton, Florida-based NCCI.
Assumptions about infection rates, hospitalization rates, compensability rates, and fatality rates come into play when assessing COVID-19’s potential impact on the comp system, NCCI said. Some assumptions have a more pronounced impact than others, and some contain a significant amount of variability, it added.
The tool may also be used to evaluate the potential impact on losses to the system of additional user-defined hypothetical scenarios and could help states draft COVID-19 responses related to comp coverage, the NCCI said.
NCCI recently calculated the overall effect of COVID-19 on workers compensation could range from $1 billion to $80 billion.
More insurance and workers compensation news on the coronavirus crisis here.