A new NCCI study released yesterday analyzes the relationship between accident report lag and increased claim costs. The NCCI team framed the new project as a follow up to a Hartford study conducted last year which found that, for Hartford claims, reporting delays significantly increased overall claim costs. The new NCCI research utilizes recent industry-wide data.
Similar to the Hartford data, NCCI found that two weeks is a pivotal window for reporting, with median cost at its lowest for claims reported in Weeks 1 and 2 post-accident. Median claim cost rose for claims reported in Week 3 by about 35 percent relative to Week 2, and in Week 4, the median cost rose another 12 percent. However, NCCI’s conclusions differed slightly from the Hartford’s in the details. 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.
Read the report in full from NCCI here.