NCCI: Workers Comp Claim Frequency Up in 2010

Claim frequency for workers compensation injuries increased 3% in 2010, marking the first increase since 1997. Although claim frequency is up, the good news is that NCCI Holding's latest data reveals that the growth in average indemnity and medical cost per claim slowed in 2010.

2010 Overall Trends

* Claim frequency for lost-time claims in Accident Year (AY) 2010 was 3% higher than in AY 2009, according to preliminary estimates. Prior to this year's uptick, claim frequency had been declining at an average rate of 4.3% per year since 1990, with the only other increases occurring in 1994 and 1997.

* A number of recession-related factors may have put upward pressure on the AY 2010 frequency measure, including an increase in new hires as the recovery began to take hold and a possible influx of small lost-time claims that may have been medical-only claims in previous years.

* For indemnity and medical combined, the change in average cost per lost-time claim was 0% for 2010.

Source: NCCI Holdings