Increase in Remote-Friendly Jobs Linked to Lower Claim Frequency
- Remote office workers experienced a 40% drop in workers’ comp claim frequency from 2019 to 2022, according to a new NCCI study.
- The researchers estimate that about half of all workers in either an office-based business or a clerical class code have remote-friendly jobs. The share increases to about three-fourths for workers who fall into both categories. Very few workers who fall outside both of these groups have remote-friendly jobs.
- These two categories of workers account for over half of all workers compensation payroll but only 11% of
workers compensation premium. - Remote-friendly work is associated with significant frequency declines in the last five years. The impact of
remote work on overall workers compensation frequency is small because such workers represent a small share of
overall premium.
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Proactive Audits by Insurers Seen Adding 18% in Additional Premium
- Insurers using proactive premium audit strategies for workers’ compensation can garner up to 18% in additional premium, according to specialist insurance consultancy ProGlobal.
- Strategies that address misclassification and underreported payroll combat premium leakage and improve financial accuracy.
- The firm aggregated results from audits it for leading US carriers over the last 18 months, which found frequent misclassification, payroll and sales underreporting, and failure to comply with state rating bureau requirements, all of which can result in premium leakage, compliance issues, and lost income.tter-informed decisions.
- Among the components of any audit strategy are: technology investment; stakeholder education; and, regulatory engagement, mainly through building strong relationships with state bureaus and industry associations helps stay ahead of changes and best practices.
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