| Spring 2009
Workers’ Comp Trends: What Do They Mean to You?
The property and casualty (P&C) market is not immune to the struggling economy. It is, however, healthier than other insurance markets, largely because P&C carriers generally invest more heavily in bonds than stocks, according to a report prepared by the Texas Department of Insurance (TDI) for the 81st Texas Legislature.
The report describes insurance market conditions, summarizes needed changes in insurance industry laws, and includes a study on the Texas Health Risk Insurance Pool. It also highlights the following trends in the workers’ comp system. To view the report, visit www.texasmutual.com/forms/report.pdf.
Trend: Nonsubscription rate reaches 15-year low
In 2008, the nonsubscription rate was 33 percent, the lowest it has been since 1993. TDI cites decreasing rates and increasing availability of workers’ comp health care
networks as reasons for the drop.
Still, about 25 percent of year-round employees worked for nonsubscribers in 2008, the highest percentage since 1993.
What does it mean to you?
Remind your clients that workers’ comp is the only coverage that provides legal protection for employers, as well as medical and income benefits for injured workers. See the Agent’s Guide to Workers’ Comp to learn the disadvantages of being a nonsubscriber and choosing alternative products.
Trend: Injury rates and claim frequency decline
Between 2000 and 2007, Texas’ nonfatal occupational injury and illness rate decreased 28 percent, keeping us consistently better than the national average. TDI cites increased safety awareness and outreach efforts by regulatory agencies among the reasons for the decline.
Fatality rates, however, continue to fluctuate. Transportation incidents are the leading causes of workplace deaths.
What does it mean to you?
Tell your staff about our free Texas Mutual® online safety resources. They are a great way for your small commercial clients to get the service they need to remain competitive through sound safety programs.
Policyholders can visit www.texasmutualsafetyfirst.com to learn three easy steps to a better safety program. They can use the safety resource center at www.texasmutual.com to correct the root causes of accidents, download safety programs, and get DVDs, videos and other training materials. Transportation-related training materials are filed under D for Driving.
Trend: Return-to-work rates improve
The workers’ comp system is getting better at performing its most fundamental functions: getting injured workers well, returning them to work and keeping them on
the job.
In 2001, 70 percent of injured workers returned to productive employment within six months of their injury, compared with 78 percent in 2006.
Just as importantly, 61 percent of injured workers who returned to work within six months of their injury stayed at work for three consecutive quarters in 2001. By 2006, that number climbed to 72 percent.
What does it mean to you?
Employers who have a return-to-work process can lower their workers’ comp costs and raise their productivity. Encourage your clients to visit the Safety & return-to-work section and download a free Return-to-Work Kit. The kit outlines five steps to a return-to-work process.
Trend: Network participation grows
Certified workers’ compensation health care networks are available in most Texas counties. Employer network participation has increased 353 percent since 2006. Between 2007 and 2008, the number of injured workers who were treated in a network increased 500 percent.
What does it mean to you?
Agents deserve much of the credit for the network system’s success. Insurance carriers need you to continue reminding your clients that network participation comes with responsibilities.
Remember, helping your clients decide whether the network is the right choice for them is the best way to serve their long-term insurance needs.
MUTUAL INTERESTS - Spring 2009
Workers’ Comp Trends:
What Do They Mean to You?
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