Florida insurance officials want to know the impact COVID-19 has had on workers’ compensation insurance but the National Council on Compensation Insurance can’t provide answers.
Correspondence between the Florida Office of Insurance Regulation and the NCCI, which files proposed rates for workers’ compensation insurance carriers, shows that approximately $34.2 million in reported losses and legal costs have been reported to the NCCI as a result of COVID-19-related workers’ compensation claims.
But in a letter to state actuary Greg Jaynes, NCCI State Relations Executive Dawn Ingham says the $34.2 million in claims should be “viewed as a starting point” for COVID-19 losses and that she wasn’t able to provide a potential estimate of total losses due to uncertainty around claims incurred but not yet reported for 2020 and how already reported workers’ compensation claims will be resolved.
Moreover, Ingham said that the NCCI did not have data for self insured businesses.
The correspondence is included in a filing the NCCI made with the OIR requesting a rule change. If approved, the assessment would charge businesses an additional $20 million a year in order to pay for a workers’ compensation catastrophe fund that would cover the costs of a catastrophe, excluding terrorism, that