The May 2025 brief outlines key challenges in the workers’ compensation market, emphasizing economic uncertainty and demographic shifts. A surge of younger, inexperienced workers is raising claims frequency, while older workers delaying retirement may increase severity. Mental health claims are growing but difficult to manage, further impacting costs. Insurers also face a shortage of claims adjusters and medical professionals. To address these pressures, carriers are encouraged to use AI tools to detect high-severity and litigation-prone claims early, helping to manage risk and improve outcomes in a complex, evolving landscape.

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