ORLANDO, FLA.–Effects of a graying workforce on workers' compensation systems in the United States are ebbing, according to an economist with a data collection group.

“It does not look like a factor going forward. The impact of aging has tapered off,” Harry Shuford said during a briefing on national trends in workers' compensation market at the annual Workers' Compensation Educational Conference.

Mr. Shuford, practice leader and chief economist for NCCI Holdings Inc., spoke at a session titled “Are Baby Boomers A Bust For Workers' Compensation,” which included Ned Wilson, director of planning and treasury at FCCI Insurance Group.

The session was one of seven sessions on national trends put on by The National Underwriter Company as part of its partnership with the Florida Workers' Compensation Institute, which runs the WCEC program, a partnership of the Florida Workers' Compensation Institute and The National Underwriter Company.

Among the reasons for an older workforce, Mr. Shuford noted, was that many workers are impacted by changes in their retirement systems. The systems provide them with less money–even as amounts needed for retirement have increased because of gains in life expectancy.

Younger workers have been dropping out of the labor force, even as those in their fifties and sixties have continued to work.

While older workers are injured less frequently, when they do suffer an accident they have more severe claims with higher costs and longer recuperation times than younger workers, Mr. Shuford said.

Part of the higher claim costs, he noted, are replacement wages, with older workers paid more because their salaries are higher. But in the future, differences in average weekly wages may shrink, he said.

Differences in the types of injuries suffered by older and younger workers are also diminishing, Mr. Shuford said.

Workers in the 45-to-65 years of age category, however, generally require 40 percent more treatment for an injury than younger workers and the drugs they are prescribed are more expensive.

Mr. Wilson, in examining the numbers from his company's experience, found one figure he could not quite explain–the medical cost for the 25-and-under age bracket has risen 10 percent a year, compared with 7 percent in the 35-to-54-year-old category.

He advised that insurers should differentially reserve for older workers.

Mr. Shuford noted that even as older workers remain in the work force the percentage of those over 65 is still tiny. He said that over age 65, the average weekly wage drops. For workers over 55, some 17 percent of their injury loss time is a result of falls, which could be attributed to poorer eyesight and an inability to move as well.

To counteract these effects, he suggested company loss control activity might include better lighting, marking steps clearly and providing handrails.

“There's a lot we can do to address these challenges,” he said.

Special Reports /

Comp Experts Study Graying Workforce Trend

Related Stories

Recommended For You