A Firm Foundation: How Insurance Supports the Economy

The insurance industry’s contribution to the healthcare industry

The healthcare industry is a prime recipient of claims filed under auto, workers compensation and other liability insurance policies.

Workers Compensation Benefits, Coverage And Costs, 2020

 

  2020 Percent change,
2016-2020
Covered workers (000) 135,572 -2.1%
Covered wages ($ billions)  $8,694 17.0
Workers compensation benefits paid ($ billions)  58.9 -6.0
     Medical benefits  27.7 -12.0
     Cash benefits  31.2 0.1
Employer costs for workers compensation ($ billions)  93.0 -7.2

Source: Workers Compensation: Benefits, Coverage, and Costs, November 2022, National Academy of Social Insurance.

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Private Passenger Auto Insurance Losses, 2012-2021 (1)

 

  Liability
  Bodily injury (2) Property damage (3)
Year Claim frequency (4) Claim severity (5), (6) Claim frequency (4) Claim severity (5), (6)
2012 0.95 $14,690 3.50 $3,073
2013 0.95 15,441 3.55 3,231
2014 0.97 15,384 3.41 3,516
2015 0.89 17,014 3.45 3,628
2016 1.04 16,082 3.41 3,969
2017 1.08 16,143 3.42 4,084
2018 1.09 17,102 3.30 4,288
2019 1.07 18,204 3.22 4,486
2020 0.90 19,691 2.42 4,959
2021 0.78 22,734 2.28 5,314
  Physical damage (7)
  Collision Comprehensive (8)
Year Claim frequency (4) Claim severity (5) Claim frequency (4), (9) Claim severity (5), (9)
2012 5.57 $2,950 2.62 $1,585
2013 5.71 3,144 2.57 1,621
2014 5.93 3,169 2.79 1,572
2015 6.01 3,377 2.62 1,679
2016 5.51 3,454 2.30 1,951
2017 5.63 3,382 2.43 1,984
2018 5.63 3,533 2.58 1,957
2019 5.66 3,673 2.78 1,929
2020 4.26 3,736 2.70 2,037
2021 4.20 5,010 3.15 2,042

(1) For all limits combined. Data are for paid claims.
(2) Excludes Massachusetts and most states with no-fault automobile insurance laws.
(3) Excludes Massachusetts, Michigan and New Jersey.
(4) Claim frequency is claims per 100 earned car years. A car year is equal to 365 days of insured coverage for one vehicle.
(5) Claim severity is the size of the loss.
(6) Includes loss adjustment expenses.
(7) Excludes Massachusetts, Michigan and Puerto Rico. Based on coverage with a $500 deductible.
(8) Excludes wind and water losses.
(9) Includes glass losses.

Source: ISO®, a Verisk Analytics® business.

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Incurred Losses For Accident And Health Insurance, 2015-2019 (1)

($000)

Year Incurred losses
2015 $3,990,585
2016 4,512,513
2017 4,649,220
2018 4,555,251
2019 4,900,860

(1) Losses occurring within a fixed period, whether or not adjusted or paid during the same period, before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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