Workers’ Compensation Costs and Heterogeneous Claims

摘要: The distribution of Workers Compensation claims are known to have thick tails so that even though relatively short duration a substantial amount the indemnity losses accounted for by very long in their duration. former types can be reasonably characterized as “high frequency/short duration” claims, whereas later “low frequency/long claims. Duration and frequency are, course, highly correlated with type claim. Temporary Total arising from lacerations, strains, sprains likely high events claim costs small per individual In contrast, permanent partial spinal cord injury is low frequency, but duration, whose inevitably large.