Workers’ Comp Market Faces Rising Costs and New Risks in 2026
- The U.S. workers’ compensation market faces rising medical costs, cumulative trauma claims, and reserve concerns in 2026.
- New presumption laws, such as those covering PTSD, make claims more complicated, and hybrid work makes it harder to tell what counts as a workplace injury.
- Employers are turning to technology, including predictive analytics, AI monitoring, and wearables, to improve safety and reduce claims.
- Captives and self‑insured groups are also gaining traction, offering stability and flexibility as the market tightens.
Connecticut Builder Arrested for Workers’ Comp Insurance Violations
- Lou Milardo, a Connecticut builder, was arrested on December 11 for failing to carry workers’ compensation insurance.
- Investigators say Lou Milardo Builders never held coverage, while his other company, J&L Milardo, briefly carried a policy before cancellation.
- The lapse became critical after an August 2021 accident, when a Milardo employee was seriously injured operating heavy machinery.
- With no policy in place, the state’s Second Injury Fund paid $85,489 in medical and wage benefits. Milardo faces two counts of noncompliance and is due in Middletown Superior Court on January 20, 2026.
Software Released to Streamline Workers’ Comp Claims
- Guidewire has released Olos, a software update aimed at streamlining workers’ compensation claims.
- The system uses analytics to detect patterns, forecast costs, and assign cases more efficiently.
- It also flags potential medical or legal complications early, giving insurers a chance to manage expenses before they escalate.
- By directing adjusters to urgent claims, Guidewire says Olos is designed to speed recovery for injured employees and reduce costs for employers.