The Future of COVID-19 Claims

As we have all witnessed first hand, COVID-19 claims have become a significant source of comp claims.  Despite this, the outlook for the comp market has improved in 2022.  Last year A.M. Best & Co., had a negative outlook in 2021, which was recently upgraded to stable.  The primary driver in that improved outlook was the “muting” effect of COVID-19 on insurers operating performance and balance sheets.  While there is an influx of these cases, many of them are low cost with nominal medical expenses.

According to the National Counsel on Compensation Insurance, COVID-19 claims accounted for 11% of claim counts, but only 2.4% of total payments.  This may be that 41% were indemnity only and 26% medical only nationally.

These claims can be challenging, especially if the claimant is covered by a presumption provision.  While the short-term outlook has improved, we will likely be handling COVID-19 claims, including so-called “long haul” claims, for some time.