Insure the older worker with workers’ compensation

In many globalized countries, including much of Europe and America, today there is a problem of an aging workforce. In Germany, many car factory workers are nearing retirement and there is a critical shortage of specialized workers to replace them. There are similar challenges in the US, over the next decade workers’ compensation laws will continue to change and adapt to these new situations.

According to data from the US Census, workers in the United States are aging rapidly and many over 55s are still employed. These numbers have increased by more than 50% in the past six years. With this in mind, there is a way for employers and employees to prepare by actually changing the work environment and being careful about more safety initiatives. This is where employers and unions have a rare situation where they can really work together for the betterment of both parties. Moreover, as raw material and labor prices in the market will fluctuate, trends in employee compensation policies will also need to change. Group health insurance will increase, forcing workers’ compensation to change as well, as the bigger companies force the insurance industry to adapt as well.

Together with the problem of employee maturation, this forms a new field of pitfalls, which in turn create financial problems that are essential in the conclusion of insurance policies. Alongside their employers, older workers must learn new methods of using modern assisted technology. Then, when incidents do occur, they are more successfully handled in employee compensation statements. Although older workers have more experience and fewer accidents at work, they are more expensive from a financial point of view than newly hired younger workers. This provides an incentive and opportunity for employers to find younger workers to replace them. However, with the changes in broad demographic trends, the gap between the aging workforce and their replacements continues to widen. The increase in age-related health problems will also lead to changes in wages.

According to the U.S. Bureau of Labor Statistics, states paid more than $56 million to help workers in 2004; that amount continues to increase every year. In almost all of these cases, the injuries were physical incidents while the employee was performing his official work duties at the assigned workplace. Nearly half of the insurance budget earmarked by the states is used only for health care bills, and in 2007 workers’ compensation payouts rose to nearly $70 million. The statistics also highlight that the main issue in workers’ compensation claims was again bodily injury.

See also  Homeowners Insurance Exclusions - Workers Compensation

The most beneficial way to improve the system is to actually favor older workers. However, as trends indicate, the system needs a major overhaul. What was sufficient in the past will certainly not be enough for some employers in the future. If workers’ compensation laws favor assisted technology, the cost to employers will rise. This can be reflected in the national economy as more regulations are applied in the various states. Assisted technology may mean higher costs for employers, but they will benefit society as a whole by reducing our government payouts in the form of personal injury claims.