A Storm is Coming

“She stood in the storm, and when the wind did not blow her way, she adjusted her sails.”

~ Elizabeth Edwards

I’m linking to an economics briefing from Leonard F. Herk prepared for the National Council on Compensation Insurance (NCCI). This report is titled “Economic Impacts of Coronavirus on Workers’ Compensation” and is a must read for industry stakeholders.

The key takeaways are as follows:

Coronavirus layoffs are happening with unprecedented rapidity but not uniformly across economic sectors and types of businesses;

Temporary business shutdowns and permanent closures have different impacts, and small businesses are at particular risk of closing permanently;

Coverage of coronavirus claims under workers’ compensation is an open question whose resolution is likely to differ across states;

Reduced access to medical care during the pandemic may increase the duration of existing claims;

Workers anticipating layoffs may defer or accelerate injury reporting, impacting claim frequency;

Motor vehicle accidents are likely to decline due to reduced business travel and less congestion;

During the pandemic, premium is likely to fall more than employment.

No one has a clear crystal ball as to where and how Coronavirus will impact employers, payors and injured workers. But doing better requires us to stay informed, be open to new technologies, have compassion for the hardest hit among us, remain ever vigilant for those attempting to game the system, and be willing to help our regulators as they navigate uncharted waters.

Call us. We can do better.

William Faris, JD
Chief Executive Officer
502-495-5040
william.faris@omca.biz
www.omca.biz

Posted in News