COVID-19 has had a significant impact on both the U.S. and global economy, creating an economic fallout akin to the Great Depression of the 1930s. For insurers, this creates an unusual assembly of variables that will likely each have a significant and unique impact on workers’ compensation claims, both in the short term, and throughout the next few years as we move through what’s likely to be a lengthy recovery period. This paper examines three aspects of COVID-19’s effect on workers’ compensation claims: the recessionary impact on claims; the recessionary impact on premiums and exposures; and the direct claims that result from COVID-19 infections.
