1、Workers Compensation Large LossesPresented by:Sandra Kipust,FCASSr.Practice Leader&ActuaryNCCIThe Source You Trust Copyright 2023 National Council on Compensation Insurance,Inc.All Rights Reserved.LARGE CLAIMS DECONSTRUCTED Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Share of ClaimsA large

2、claim is defined as exceeding$1M in incurred lossShare of LossesLarge ClaimsLost-Time Claims4 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Development types for Large ClaimsFASTELCSLOWELCExceed$1M within 2 years of injuryExceed$1M 2 years or more after injury5 Copyright 2023 NCCI Holdings,In

3、c.All Rights Reserved.43503328060Frequency of Large Claims per 10K Lost-Time ClaimsRecoveryRecessionPre-Great Recession2002200820122021Accident Year6 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.36891215016Deconstructing Frequency of FASTELC per 10K Lost-Time ClaimsBurns,Spinal Cord Injuries

4、,and Traumatic Brain Injuries(B,SCI,TBI)and Other20122021Accident Year7 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Deconstructing Frequency of SLOWELC per 10K Lost-Time ClaimsDegenerative Disc Disorders,Pain and Other20122021Accident Year628 Copyright 2023 NCCI Holdings,Inc.All

5、Rights Reserved.Top Causes and Injuries for workers with large claims SLOWELCFASTELCCaused by Fall or Slip from Elevation and Motor Vehicle AccidentsCaused by Strain or Injury by LiftingResulting in FracturesPrimarily injuring Multiple Body PartsResulting in StrainsPrimarily injuring Lower Back9 Cop

6、yright 2023 NCCI Holdings,Inc.All Rights Reserved.Occupations of injured workers with large claims Installation of Machines and EquipmentConstruction-RelatedOperation of Motor Vehicles 2531%of FASTELC are construction-related2024%of SLOWELC are construction-related8-11%4-5%8-10%4-6%10 Copyright 2023

7、 NCCI Holdings,Inc.All Rights Reserved.Occupations of injured workers with large claimsInstructional and Medical ProfessionalsClericalSLOWELC5-7%4-6%11 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Age at injury for a worker with FASTELCs and SLOWELCsUnder 3535-55Over 55Share of Claims0%60%12

8、 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.0%100%FatalPermanent TotalOtherInjury Types for injured workers with large claimsFASTELCSLOWELCNearly 33%result in Permanent Total Injuries15%result in FatalitiesOver 75%of Slow ELC are classified as Other,which includes Permanent Partial Injurie

9、sHow are these differences reflected in severity?Results are at 5 years after injury13 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.3.01.6Deconstructing Large Claim SeverityAverage Claim Cost($in Millions)Similar amount of indemnityFASTELC SLOWELC INDEMNITYMEDICAL14 Copyright 2023 NCCI Holdi

10、ngs,Inc.All Rights Reserved.Deconstructing Medical Service Costs44%27%0%100%OtherMedicalSuppliesDrugsHospitalPhysicianYear 1Year 10Non-LargeClaims15 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Deconstructing Medical Service Costs68%56%0%100%OtherMedicalSuppliesDrugsHospitalPhysicianYear 1Ye

11、ar 10FASTELCBurns,SCI,TBI16 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Deconstructing Medical Service Costs 68%29%25%0%100%OtherMedicalSuppliesDrugsHospitalPhysicianYear 1Year 10FASTELCfor All Other17 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Distribution of Other Medical Cost C

12、ategory77%57%0%100%Burn,SCI,TBIAll OtherHome HealthSkilled NursingTransportationMiscellaneousFASTELC18 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Deconstructing Medical Service Costs57%27%35%0%100%OtherMedicalSuppliesDrugsHospitalPhysicianYear 1Year 10SLOWELC19 Copyright 2023 NCCI Holdings

13、,Inc.All Rights Reserved.0%25%2000182019Both Non-Opioid and Opioid Share of Prescription DrugsHave Been Steadily DecreasingSLOWELC21%12%20 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.Price pressure on the costs for large claimsMedical Service CategoryInflation Rateas o

14、f MarchPhysician care1.0%Hospital inpatient care3.5%Hospital outpatient care1.7%Prescription drugs2.4%Medical supplies7.7%Home health and hospice care7.6%Nursing home care5.7%Transportation services14.6%21 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.1Relative frequency trends indicate long-

15、term declinesSummarizing Large ClaimsBurns,Spinal Cord Injuries,Traumatic Brain InjuriesDegenerative Disc Disorders and Pain2Identifying leading causes of injuryFall or Slip from Elevation Motor Vehicle AccidentsStrain or Injury by Lifting3Medical services exhibit varying inflation and utilizationHome Health CarePrescription DrugsIncreases inFASTELCDeclines inSLOWELC22 Copyright 2023 NCCI Holdings,Inc.All Rights Reserved.23Learn More on Workers Compensation Large LossesPresented by:Sandra Kipust,FCASSr.Practice Leader&ActuaryNCCI