Countrywide Mega Claims Highlights and Video
A recent webinar and report on countrywide mega claims showed one pattern that made me pause and think. This website has published a few articles concerning the subject.
The report and webinar return to the subject of workers comp mega claims. From my viewpoint, any claim that reaches $250,000 becomes a mega claim. Check out the link to see why I came up with the idea. The claims department mechanisms change at that point.
The countrywide mega claims have been set at any over $2 million.
If you wish (and you should) to download the report, check out this link:
Country-wide-Mega-Claims-Report-2001-2021.pdf
The report totals 74 pages.
The countrywide mega claims webinar can be found here.
The rating bureaus that contributed to the report and webinar are:
- California’s WCIRB
- Indiana Compensation Rating Bureau
- Minnesota Workers Comp Insurance Association
- New Jersey Compensation Rating and Inspection Bureau
- North Carolina Rate Bureau
- Delaware Compensation or Rating Bureau
- Compensation Advisory Organization of Michigan
- NCCI
- New York Compensation Insurance Rating Bureau
- Pennsylvania Compensation Rating Bureau
How Can I Use This Info?
One can use this information to prepare an outstanding presentation. Just make sure to give credit and links to the report.
For instance, let us says that a Claims and Risk Manager for a nationwide transportation company wants to see which workers carry a higher risk. Even if the company insures themselves for WC (self-insured), Chart 11 provides invaluable information.
From the Report –
In Chart 11, claims from strains are split out from all other causes of injury group for claims in excess of $2M. Like lower back injuries, the share of claims from strains decreases between 2003 and 2019. In contrast, the share of motor vehicle claims grows over the 2003 to 2021 period. On average motor vehicle claims represents approximately 15% of countrywide mega claims annually between 2001 and 2006, increasing to 20% of mega claims between 2016 and 2021.
What does this mean to the Claims and Risk Manager? The risk of huge MVA claims involving the drivers increased 33% for the countrywide mega claims (15% to 20%). While this may look small, the risk increased substantially. The chance of a mega claim somewhat spiked for drivers.
