NCCI Study: Reporting Delays Increase Claim Costs
NCCI has released the results of a new research brief that examines the relationship between injury report lags and increased claim cost. The study utilizes recent industrywide data. The results of the study “The Relationship Between Accident Report Lag and Claim Cost in Workers Compensation Insurance” include several key findings:
• The median cost of claims reported between one day and two weeks after an accident is significantly lower than the median cost of claims reported either on the day of the accident (Day 0) or more than two weeks after the accident.
• The Hartford study found that injuries reported in Week 2 had a higher median cost than claims reported in Week 1. NCCI found a slightly different relationship, which depends on the nature of injury. For sprains and strains and for contusions, the minimum median cost is for claims reported in Week 1. For fractures and lacerations, the minimum median cost is for claims reported in Week 2.
• Across three-day and seven-day waiting period states, the median claim cost for claims reported in Weeks 1 and 2 is lower than the median claim cost for claims reported on either the day of the accident or more than two weeks after the accident.
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