COVID-19 and rate adequacy are at the top of the list of concerns among 102 workers compensation insurance executives surveyed in October by the National Council on Compensation Insurance, according to a report released Tuesday.
The Boca Raton, Florida, ratings agency also found the shifting workforce, the potential for increased safety concerns due to an inexperienced and yet ever-aging workforce, and rising medical costs as among other top concerns.
On COVID-19, the report noted that “(e)ven as the pandemic appears to be subsiding in some areas, the potential for new variants and longer-term impacts reverberate, creating a significant shift in the industry landscape.” Executives are concerned with how the expansion of presumption for infectious diseases might impact workers compensation coverages and costs, and whether a significant number of employees working from home rather than in an office will have an impact on the industry. Quantify the costs and challenges associated with “long-haul” COVID, including return to work, and the financial impact of resulting medical and indemnity claims, are also a concern.
On rate adequacy, the report said insurers are focused on ongoing loss cost decreases, driven primarily by declining frequency across all areas and categories, and their ultimate impact on premium levels, yet are concerned whether the trend will continue.