Insight

The Impact of COVID-19 on Workers’ Compensation

The effect of COVID-19 on workers’ compensation claims and considerations be more responsive

Scott Weinstein

Scott Weinstein

Principal, Advisory, Actuarial, KPMG US

+1 404-222-3594

Chris Nyce

Chris Nyce

Principal, Advisory, Actuarial, KPMG US

+1 610-341-4803

Ian Sterling

Ian Sterling

Advisory Managing Director, Actuarial, KPMG US

+1 856-912-7242

Rachel Dolsky

Rachel Dolsky

Director Advisory, Actuarial, KPMG US

+1 484-431-1361

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.