Unclear how virus will affect rates
- June 5, 2024
- Posted by: Web workers
- Category: Workers Comp
It remains to be seen whether new COVID-19 claims from industries not accustomed to accepting virus-related workers compensation claims will immediately affect rates.
Jeff Eddinger, a senior division executive for the Boca Raton, Florida-based National Council on Compensation Insurance, said the ratings agency will soon decide whether to include COVID-19 claims in experience ratings. NCCI provides guidance to 37 states.
“Is it something that’s out of the control of an employer, or is it something that is indicative of their future experience?” he asked. “Obviously, this is a very unique situation that no one saw coming.”
The California Workers Compensation Insurance Rating Bureau announced April 7 that it would not include COVID-19 claims in its experience modification calculations.
“The insurance industry is being asked to cover claims that they didn’t contemplate covering but not collect additional premium for doing it,” said Mark Walls, Chicago-based vice president of communications and strategic analysis for Safety National Casualty Corp. “It’s too early to say what this will do to rates going forward.”
Regardless of what happens down the road, Mr. Walls said he’s confident that the workers compensation system has sufficient reserves to cover COVID-19 losses.
“But make no mistake, this is going to be a significant adverse event for the workers comp industry,” he said.
More insurance and workers compensation news on the coronavirus crisis here.
