Nearly 25% of workers will be over 55 by 2025 – what it means for workers’ comp

A new BLS report highlights just how long Americans are continuing to work, and for construction and energy sectors, the insurance consequences could be big

Insurance News

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Lackluster retirement savings and the still-lingering effects of a recent recession have kept thousands of employees in the workplace the world over, but in the United States, the trend is particularly drastic.

According to Bureau of Labor Statistics workface participating ratings and population projections, nearly 25% of workers in the US will be 55 years of age or older by 2025. In some industries – such as construction, oil and gas, and energy – Baby Boomers already dominate the workforce.

While it’s easy to believe the presence of older people in workforce could increase the risk of workplace accidents and heighten workers’ compensation claims (as well as premiums), however, this may not actually be the case.

Amerisafe, a leading workers’ comp insurer based in the Southern US, says the vast amount of experience these employees have is actually decreasing their likelihood for an accident.

“More experienced workers with a wealth of knowledge are out in the field,” the company said. “As a result of their experience, older workers are less likely to be inured on the job because they know how to avoid certain risks and are more willing to point out activity that could lead to injury.”

This holds true in nearly all categories, with the exceptions of trips, slips and falls, which nearly double among workers over the age of 45.

Yet when these workers do get hurt, they take longer to heal. A recent analysis from Milliman and Keenan Healthcare has found that while workers’ comp claims have decreased in frequency, they are rising in severity.

In fact, the overall losses per $100 of payroll stayed relatively unchanged from 2004 to 2014, while the severity of claims increased by 5.5% annually during the same period.

The end result is that older workers take an average of 17 days to return to the job for simple injuries in comparison to the younger generation.

“A simple slip and bruised elbow for a younger worker could result in a broken arm for an older worker,” Amerisafe explains. “Although people heal differently, as people age, their vision, hearing and balance end to decline. With even more older workers remaining employed, the number of injuries and fatalities will likely grow.”

This can place insurance agents in the position of risk manager and advisor for their clients, helping company leaders to think strategically rather than just defensively, says Scott Steinmetz, Assistant Vice President of Risk Services and Solutions at Fireman’s Fund.

“I think that while this has traditionally been viewed from a tactical standpoint, we’re suggesting that it deserves a more thoughtful and strategic approach,” Steinmetz said. “C-level offices in organizations are going to need to be quite organized, and one of the keys in this transition is recognizing it’s not just about economic reconfiguration to adapt to people’s situations as physical and mental faculties slowly degrade.

"At the end of the day, what we really do need to think about is how to transfer the knowledge, the experience and the qualifications of this aging population to help those who are young in their careers to have a faster uptake in production in their profession, using the value coming from the aging population.”

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