Emerging Workers Comp Trends: What to Expect in 2025

December 16, 2024

Workers’ compensation was established in 1908 to protect workers operating in hazardous situations across the country. More than 100 years later, workers’ compensation has changed dramatically, influenced by technological advancements, evolving workforce demographics, and increasing awareness of mental health issues.

Understanding these workers’ comp trends is crucial for employers, employees, and insurance providers to ensure adequate coverage and workplace safety. Read on to learn what workers comp trends could influence the employee protection landscape in 2025.

Rise of artificial intelligence

Artificial intelligence (AI) improves various aspects of claims processing and risk management. One example is predictive analytics, which identifies potential claims before they occur and allows preemptive actions to address risks. Automated claims processing makes the entire process more efficient and accurate, while AI-driven rehabilitation programs provide personalized recovery plans tailored to individual needs.

These advancements in AI streamline operations and improve outcomes for insurers and claimants, bringing with them better efficiency and effectiveness in workers’ compensation.

Also read: Preventing Worker Injuries with Electrical Equipment Safety

The role of telemedicine

Telemedicine has gained traction as a valuable tool in the workers’ compensation field, especially following the COVID-19 pandemic. It offers several benefits:

Immediate access to medical professionals for injured workers
Reduced need for in-person visits, which can be time-consuming and costly
Continuous monitoring and follow-up care through virtual consultations
Improved access to specialists, regardless of geographic location

The gig economy and uninsured workers

Millions of workers remain uncovered by workers’ compensation and unemployment insurance because they are not classified as employees. This issue is particularly prevalent in the gig economy, where workers often operate as independent contractors. These workers lack traditional workers’ compensation coverage, leaving them vulnerable to income loss and medical expenses in case of injury.

Regarding workers’ comp trends for 2025, efforts by states and municipalities to extend protections to gig economy workers are ongoing. The big trend for 2025 will be the ongoing legal battles over worker classification, as there is significant debate regarding whether gig workers should be entitled to the same benefits as traditional employees.

Technology’s impact on workers’ comp trends

Technological advancements are reshaping how workers’ compensation programs are managed and delivered. Here are some of the emerging technologies making an impact:

Wearable devices: These devices monitor physical conditions and environmental factors in real time, helping to prevent injuries and improve response times.
Virtual reality (VR): VR is used for training and rehabilitation purposes, offering immersive and effective ways to prepare workers and aid their recovery.
Blockchain: The technology enhances transparency and security in workers’ compensation claims, reducing the risk of fraud and streamlining the claims process.

An aging workforce

As the average age of workers increases, there is a higher incidence of chronic health conditions and comorbidities, along with an increased likelihood of workplace injuries and longer recovery times.

To address these issues, workers’ compensation programs must implement tailored safety programs and ergonomic solutions, focusing on preventive care and health maintenance. These measures are essential to support older workers in maintaining their health and productivity, ensuring a safer and more efficient workplace.

Also read: Protecting Employees Hurt on the Job: Workers’ Compensation for Amusement Parks

Focus on mental health issues

Mental health has become a prominent topic, with employers increasingly recognizing the importance of addressing mental health issues in the workplace. The impact could be:

Increased claims for mental health-related injuries and illnesses
Implementation of workplace mental health programs
Training for managers to identify and support employees with mental health concerns
Integration of mental health services into existing workers’ compensation programs

How employers can adapt to evolving workers’ comp trends

To effectively navigate the evolving landscape of workers’ compensation, employers should consider implementing the following strategies:

Invest in mental health resources: Providing access to mental health support and training can help reduce the incidence of mental health-related claims and improve overall employee well-being.
Leverage technology: Utilize AI, telemedicine, and wearable devices to enhance safety, streamline claims processing, and improve outcomes for injured workers.
Review and update policies: Regularly assess workers’ compensation policies to ensure they address the needs of all employees, including those in non-traditional roles like gig workers.
Focus on prevention: Implement comprehensive safety programs and ergonomic solutions to minimize the risk of workplace injuries, especially for older workers.

McGowan Workers Compensation Insurance

As workers’ comp trends evolve, employers must partner with an insurance provider that understands the latest trends and offers tailored solutions.

McGowan Program Administrators provides comprehensive Workers’ Compensation Insurance designed to meet the unique needs of various industries. Benefit from tailored workers’ compensation insurance supported by expert claims handling and managed by dedicated adjusters with deep expertise in workers’ compensation. Through strategic partnerships with industry leaders, McGowan gives clients access to valuable resources and insights while offering coverage that is both accessible and cost-effective.