How labor, comorbidities, mega claims, telemedicine and other trends are impacting this important market
May 2021 | General Industries
BY MOLLY FLANAGAN and JAMES (JIM) LINDSEY, Nationwide Experts
AARON SYMONDS and KATE HARRIS, Agent Experts
For every year a person ages, the medical cost of an injury increases by 1.1%, and the indemnity cost increases by 3.5%
In recent years, there has been an uptick in mega claims workers’ compensation claims in excess of $3 million
Telemedicine is becoming increasingly popular, and recent estimates indicate the market could reach nearly $7 billion in value by the end of 2020
Workers’ compensation is a critical form of insurance coverage that can benefit both employees and businesses alike. Should an employee get injured or become ill as a result of a work-related incident, workers’ compensation insurance reimburses that employee for lost wages and medical expenses related to treatment and rehabilitation. Not only is workers’ compensation insurance required in most states, but it also plays a critical role in connecting injured employees to the care they need to return to work as quickly and safely as possible.
Given its importance, businesses need to be aware of sweeping workers’ compensation trends — including trends related to an aging and inexperienced workforce, comorbidity, telemedicine and mega claims — that have the potential to impact their operations now and into the future. This article will examine some of these trends in detail, arming businesses and the agents who represent them with the information they need to respond effectively to an evolving workers’ compensation market.