The good news: Claim frequency declined, but it declined less than in previous year, according to NCCI press release issued August 1, 2008.
The bad news: Indemnity and medical severities increased. The increase in lost -time wage claims is projected to have been 4 percent in calendar year 2007 which outpaced wage inflation of 3.3%. Medical claim costs rose 6% in 2007 outpacing the CPI for medical care which was 4.4%.
Permanent total disability claimshave increased significantly over the last three years. Permanent total claims rose the most in the Southeast region and in the contracting industry and other industries that are in the “miscellaneous” category.
Factors influencing frequency declines slowing are: the economic downturn which can result in hiring more injury prone, less experienced workers. Factors which are thought to help in reduction in frequency are: global competition, more robotics use, ergonomic design improvements, increasing use of cordless tools, and increased use of power-assisted processes.
The lesson: make sure to get safety departments involved in your workers comp cost containment efforts, and WORK TOGETHER!
To get management buy-in use the Sales to Pay for Accidents Calculator at: http://www.reduceyourworkerscomp.com/calculator.php
The Biggest Mistakes Employers Make is at: http://www.reduceyourworkerscomp.com/lower-reduce-workers-comp-costs.php
