Service Economy Encouraging, Obesity Discouraging for Workers’ Comp

I believe that one of the favorable trends impacting workers’ compensation in the decades ahead will be driven by our service based economy. There will be relatively fewer manufacturing and construction injuries for two reasons; the economy will be focused on service based jobs and those employed in manufacturing and construction industries will be better educated as well as assisted by superior technology. I do not understate or underestimate the likely increase in the cost or frequency of repetitive motion claims; however, they would seem to be appreciably more susceptible to treatment through preventative measures and medical advances than debilitating manufacturing and construction injuries.

This prediction inherently assumes that the more successful and larger manufacturing and construction firms will move toward or continue to self-insure; thereby representing less and less of the premium volume written by workers’ compensation insurers and state funds.

The trend that will challenge workers’ compensation over the next several decades is obesity. Recent reports from The Center for Disease Control, the Journal of Occupational and Environmental Medicine and the World Health Organization have summarized the epidemic on obesity. One in 10 of the world population is obese. The situation in the U.S. is worse. More discouraging is the fact that the rate at which people are becoming obese has doubled since 1980.

Although some believe that you can leave your personal issues at home and come to work with a clear mind and a fresh perspective, no one can do this with excessive weight. If you travel by air, you have seen double-wide wheel chairs at airports. The need for seat belt extenders has out stripped the supply. Even the chairs that businesses purchase to complete an office suite are wider and stronger than a few years ago. The science of ergonomics cannot keep pace with weight gains.

No pun intended but obesity may be the straw that breaks the back of 24-hour healthcare coverage. If we cannot discern between injuries caused through employment and injuries attributable to obesity or morbid obesity, the federal government may close the coverage gap through the introduction of 24-hour coverage.

Petrelli is president of Demotech Inc., (www.demotech.com), a financial analysis and insurance rating firm located in Columbus, Ohio. Demotech is an Insurance Journal research partner. Petrelli may be reached at JPetrelli@demotech.com.

Topics Workers' Compensation Manufacturing Construction