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NCCI deconstructs trends around high-cost workers' comp claims

Review the difference between fast and slow high-cost claims and how the pace at which a claim unrolls impacts loss costs.

By Raji Chadarevian and Anae Myers, ACAS, MAAA | October 13, 2023 at 01:52 AM
Almost one-third of all fast emerging claims come from construction-related occupations, according to the NCCI. Fast claims are typically caused by falls from elevation and motor vehicle accidents resulting in traumatic brain injury, burns severe spinal cord injuries or traumatic fractures. Credit: Photographee.eu/Shutterstock.com Almost one-third of all fast emerging claims come from construction-related occupations, according to the NCCI. Fast claims are typically caused by falls from elevation and motor vehicle accidents resulting in traumatic brain injury, burns severe spinal cord injuries or traumatic fractures. Credit: Photographee.eu/Shutterstock.com

There’s widespread interest in large claim trends for compelling reasons — they can be devastating for the injured worker and can have significant implications for carrier operations.

Workplace injuries that result in large claims — e.g., exceeding $1 million in claim costs — form a small share of all lost-time claims, less than 0.5%. But they have a massively disproportionate impact on losses, comprising up to 15% of total indemnity and medical costs for the workers’ compensation system.

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