The difficult predictions about the impact of the COVID-19 pandemic on the labor compensation industry have not materialized, as 2020 was another profitable year for the line, according to the National Council on Compensation Insurance's annual State of the Line report.  "We feared that the pandemic could be devastating to workers' compensation systems," said Donna Glenn, chief actuary of Boca Raton, NCCI, Florida, at the credit rating agency's annual issuance symposium 2021, which was held virtually on Tuesday. “We will continue to have uncertainties in 2021, but we have fewer of them. In addition, we have renewed confidence in the system's strength and resilience.
Written net premium in the employee compensation line fell 1
Claims frequency, excluding COVID-19 claims, decreased by 7% in 2020, although the degree of damages increased by 3%.
“We can continue to see the strength of the line. It is now four years in a row with a combined relationship below 90, says Glenn. "The total reserve position for private carriers was even strong last year," and NCCI states reported only $ 260 million in COVID-19 losses for the year, she said.
NCCI states reported 45,000 coronavirus claims, with 75% claims, said Nadege Bernard-Ahrendts, NCCI's practice leader and senior actuary during the presentation.
"Over 60% of receivables are less than $ 1,500 … 95% of COVID-19 receivables are under $ 10,000," she said. Claims over $ 1,000 account for 1% of COVID-19 receivables, but over 60% of total COVID-19 losses. The majority of these claims were still open at the turn of the year.
And healthcare professionals and first responders accounted for 75% of these COVID-19 claims, and healthcare professionals reported the highest number of coronavirus claims, Ms Bernard -Ahrendts said.
"I am surprised that we have so few statements," Glenn said during a question-and-answer session. “What is remarkable is that the people who had workers who worked in 2020 generally took care of them. If I see low injury volume here, it basically tells us that the system and employers only think and keep the safety of employees in mind. ”
More insurance and work compensation news about the coronavirus crisis here .