Workers Compensation and the Declining Economy
How will the declining economy impact workers compensation claims? Will employees refrain from submitting claims, or will frequency rise as individuals become more uncertain about their employment status?
- Frequency rates in California have steadily declined over the past several years. It is anticipated that even with the declining economy that this trend will continue into the future.
- Companies may experience a temporary increase in frequency as a result of layoff’s, location closures or rumors of layoffs or closures. This may occur as a result of individuals looking to secure indemnity benefits and to avoid or delay unemployment for as long as possible.
- Following layoffs or closures, companies will likely experience a rapid decline in frequency as a result of the remaining staff being more seasoned and experienced.
- The Bureau of Labor Statistics has found that the greatest level of frequency occurs within the less experienced employee population. Often these individuals are the first to be let go during layoffs.
- Also, contributing to the frequency decline is an overall reduction in company production as a result of the slowdown. A reduction in employee hours will result in fewer claims.
- Interestingly, The National Council on Compensation Insurance, Inc. (NCCI) notes that growth in frequency is more likely during periods of economic growth versus decline.
Athens Administrators –
Proven Expertise in Turbulent Financial Times
We work closely with each of our clients as a true partner to deliver maximum value. Athens specifically contributes to successful workers compensation programs during challenging times:
- Communication – we listen to our clients, develop custom program strategies and execute effectively.
- Thoroughly review all new claim submissions and investigate all suspicious occurrences.
- Consistent, aggressive delay and denial of claims when appropriate. This is a critical to eliminating questionable claims before they can gain traction.
- Facilitate and promote Return to Work programs. Return to Work programs have proven to greatly reduce the amount of time that employees remain off work due to injuries.
Athens Administrators has successfully administered claims for over thirty years. We have exceptional clients that include Fortune 500 companies, outstanding regional businesses, and some of the most recognizable public agencies in California. We are passionate about delivering exceptional service and superior results to our clients.
For more information please contact:Bruce Lees