Research Shows Continuing Reduction in Workers' Comp Claims Frequency

The decline in claim frequency for workers' compensation injuries continued in 2008, and economic factors suggest further reductions are likely in 2009, according to a report by NCCI Holdings. However, NCCI's latest review of claim frequency and severity shows that, while claim frequency is down, indemnity and medical severities continue to rise.

In its latest report, NCCI noted:

• Over the last five years, there were significant declines in total lost-time claims frequency for all industries, geographic regions, and employer sizes.
• The number and frequency of permanent total claims have increased significantly over the last four years, with all major causes of injury contributing to the rise.
• The rise in permanent total claims appears to be driven primarily by workers age 50 or under.
• While claim frequency generally decreases as risk size increases, single-state risks in some classes have higher claim frequency at the higher payroll sizes than at lower payroll sizes.

The National Council on Compensation Insurance Inc. is a provider of workers compensation and employee injury data and statistics.