Pandemic Effect End Date – Later Than You Think
When do/did all Workers Comp policies contain a pandemic effect end date? J&L has surprisingly received so many questions have surprisingly been received on this subject in mid to late 2025. As the old saying goes, many questions deserve an answer.
Yes, this returns to 2023. Follow along to see pandemic effect end date periods because most policies still see the pandemic effect end date occurring in the future.
The California pandemic effect end date for Workers Comp policies was covered in this article. The ground rule is that some states may have slightly different dates.
The NCCI E-1410 notice dates will be used for the analysis. The Q&A on the linked webpage covers the situation well,
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According to NCCI –
More than three years into the pandemic, much has changed relative to the general US population and the workers compensation environment. The National Council on Compensation Insurance (NCCI) proposed two workers compensation insurance countrywide item filings, E-1410 and B-1447, on February 1, 2023. These filings propose an expiration date of June 30, 2023, for the special treatment of COVID-19 (coronavirus) reporting rules and claims.
Item E-1410 proposes revisions to the rules to:
- Establish an end Accident Date of June 30, 2023, to Extraordinary Loss Event (ELE) Catastrophe Number 12 for the reporting of claims attributable to COVID-19 (coronavirus)
- Include claims attributable to COVID-19 (coronavirus) with Accident Dates on and after July 1, 2023, in experience rating calculations, except in Illinois, and merit rating plans (where applicable)
- Report COVID-19 (coronavirus) claims to ELE Catastrophe Number 12 only if these claims have Accident Dates between December 1, 2019, and June 30, 2023
- Exclude COVID-19 (coronavirus) claims from experience rating calculations and merit rating plans (where applicable) only when these claims have Accident Dates between December 1, 2019, and June 30, 2023, and are reported with ELE Catastrophe Number 12
Note: In Illinois, claims attributable to COVID-19 (coronavirus) will continue to be excluded from experience rating calculations after June 30, 2023. However, ELE Catastrophe Number 12 will not be reported after June 30, 2023.
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I had written a few articles back in 2020 and 2021 in response to workers comp pundits wanting to know the immediate workers comp pandemic effect numbers. My articles referred to the delayed workers comp system as insurance carriers do not report full policy numbers until the first UNIT STAT date, no matter the state.
Predictive analytics has changed the way that carriers underwrite insured clients. Many underwriters are now looking back up to 10+ years at workers comp claim histories instead of the usual four.
Policy Example
Let us count out how that works – valued means claim valuations (Rating Bureau Total Incurred). Please remember that we are using a 7/1/2023 – 7/1/2024 policy to illustrate the last possible final pandemic effect end date.
- Valued 1/1/2025 (1st UNIT STAT date)
- Applies to July 1, 2025 – July 1, 2026, policy Experience Mod – has two years of pandemic data left
- Valued again 1/1/2026 (2nd UNIT STAT date)
- Applies to July 1, 2026 – July 1, 2027, policy Experience Mod – still has one year of pandemic data remaining
- Valued again 1/1/2027 (3rd UNIT STAT date)
- Applies to July 1, 2027 – July 1, 2028, policy Experience Mod – last one to be affected
The July 1, 2028, policy would be the first policy year to not have any of the pandemic policy years’ data included in the Experience Mods.
Workers Comp Pandemic Effect Date – Just the Numbers
Yes, the effect of the pandemic will linger on for what could be decades. The E-Mod/X-Mod system will still have the effect present for four more years. That is the way the numbers are structured for claims development.
I wanted to show how the Experience Mod numbers would be affected overall. This article may generate questions. Please comment or email me.
