The labor compensation market remains stable and competitive, despite difficult predictions at the beginning of the pandemic, according to a study released Thursday by Marsh LLC. Presumption laws, wage falls and changing classifications of employees, however, continue to create challenges for employers, the broker warned.
The report, which studied the impact of the coronavirus on the workers' compensation market and looked at future industry challenges, found that average renewal premiums have been between -5% and 3% in the first half of 2020, and that claims about COVID-19 exposure in the workplace has had minimal impact on the market, largely due to the reduction of other reported occupational injuries
But industry experts predict premium volume to decrease by as much as 20% by 2020, with premiums continuing to fall in 2021
This is in line with June forecasts from the Deloitte Center for Financial Services, which expects the same decline with a recovery not before 2023.
The industry has not seen the expected large number of COVID-19 claims, according to the report, even with laws in more than a dozen states that give the assumption that certain classes of workers who hire COVID-19 did so at work, making it easier for these workers to receive workers' compensation benefits.  Changes may be on the horizon for some employers in terms of workers' compensation premiums due to changes in wages, changes in the classification of workers and the classification of injuries. The study notes, for example, that waiting personnel who may not deliver orders or perform remote control service functions would temporarily fall under different class codes.
More insurance and work compensation news about the coronavirus crisis here .