Data shows aging workers driving up comp costs

May 14, 2025

CHICAGO — The aging workforce is becoming a driving factor in increased workers compensation costs, and claims managers are turning to technology and other tools to restrain the long-expected trend, experts say.

Early intervention and management of comorbidities are key to reducing age-related medical costs, they said during interviews last week at Riskworld, the Risk & Insurance Society Inc.’s annual conference.

Workers 60 years and older had the highest increase in overall new claim volume each year between 2020 and 2024, according to data from Sedgwick Claims Management Services Inc.

Other data shows that the average indemnity duration for older workers is nine days longer than that for younger workers and costs 35% more in both income replacement and medical costs, said Max Koonce, Bentonville, Arkansas-based chief claims officer at Sedgwick.

It’s unclear whether workers are getting older on average or returning to the workforce post-retirement, he said, pointing to Bureau of Labor Statistics data that shows employment projections for 2023 to 2033 include a 22.4% rise in workers aged 65 to 74 and a 79% increase in workers older than 75.

Executives with other companies working with injured workers said anecdotally that injuries among older workers are on the rise, and that technology is helping to mitigate rising costs related to claim complications.

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