Workers' compensation will rise to the challenge against COVID-19

This moment is a call to action for leadership in the workers' compensation system.

This moment is a call to action for leadership in the workers’ compensation system. Vigilance is key. But vigilance is also hard. It requires a lot from all of us. And it’s critical to ensure that we are there when workers, employers and our communities need us. (Credit: danielfela/Shutterstock)

Just about everyone in the insurance industry had pandemics on their list of emerging risks. But very few likely put it at the top of their list. For many of us, a pandemic was something that could only happen on the other side of the ocean.

As the German economist Rudi Dornbusch wisely said, “In economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.”

Our current moment proves his point.

Workers, employers, and the workers’ compensation system have taken a body blow. In just the month of April, 20.5 million U.S. workers lost their jobs. Unemployment soared from 3.5% in February to 14.7% at the time of this article. Unfortunately, many economists expect the news to get worse before it gets better.

The workers’ compensation system faces massive challenges:

The ground is shifting beneath our feet. Uncertainty abounds. We have far more questions than answers. In moments like this, it is natural that people — even the most resilient among us — become consumed by fear, uncertainty and doubt.

This moment is a call to action for leadership in the workers’ compensation system. Vigilance is key. But vigilance is also hard. It requires a lot from all of us. And it’s critical to ensure that we are there when workers, employers and our communities need us. I am confident that the workers’ compensation system will rise up to the challenge.

There are three reasons for my confidence, despite the depressing economic news and the unprecedented issues the system faces.

First, the industry arrives at this moment from a position of strength. As NCCI Chief Actuary Donna Glenn shared in her State of the Line Report recently, workers’ compensation finished 2019 with some of its best results in history. Second, when I speak with dozens of industry leaders, they are concerned about the future. However, without exception, they remain committed to the mission of our system. They know that we all must work diligently to create and maintain safe workplaces, and to be there for injured workers, their families, and the employers who rely on them. Finally, I have confidence because of the extraordinary people who serve on the front lines of the workers’ compensation system. People like case manager Mary Ann Dufault.

“We try to do the right thing for every injured worker. So we’re working constantly to get them the most appropriate care possible,” Dufault says. “There are so many moments that you know you’re making a difference for good. And that’s why we’re here.”

That is why workers’ compensation exists: to help injured workers recover. The workers’ compensation system must be agile and responsive in the weeks and months ahead. Our role at NCCI is to bring valuable perspective and education to policymakers, regulators, carriers, brokers and employers.

We have created a financial modeling tool to help stakeholders evaluate the costs of presumption proposals and infection scenarios. NCCI will continue to deliver economic briefings and reports that support constructive dialogue. At a moment when we see widespread speculation, NCCI will provide facts, data and analysis for informed decision-making. We have better analytical tools than ever.

The workers’ compensation system is strong and resilient. If we remain vigilant, I am confident that we will weather this storm and deliver for our stakeholders when they need us most.

Bill Donnell (bill_donnell@ncci.com) is the CEO of the National Council on Compensation Insurance. The views expressed here are the author’s own. 

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