A key market issue facing employers and workers' compensation insurers is whether the large declines in claim frequency that began in the 1990s are likely to continue, according to the National Council on Compensation Insurance.
In late 2003, research by the council showed a decrease in on-the-job claim frequency for workers' compensation injuries. Revisiting the issue in 2004, NCCI reported that the 2003 trends continued, with the reduction most pronounced for smaller claims. This has contributed to increasing average medical and indemnity severities, however. In fact, medical severity experienced double-digit increases during 2004, with indemnity severity experiencing significant increases, as well, the report noted.
The decline in frequency of workers' compensation claims spanned almost all occupations. In particular, several occupations in the goods and services industry (such as hotels and charitable/welfare organizations) had much greater declines in frequency than other occupations.
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