2025 Workers’ Compensation Trends: What Reduced Claim Frequency Means for Your Bottom Line

It’s a mixed bag for Workers’ Comp in 2025.

While many employers are celebrating a decline in the number of workplace injuries, rising costs per claim are starting to quietly eat away at the savings. If you’re not tracking both claim frequency and severity, you may be missing the full picture.

Here’s what industry data from 2024–2025 reveals:

Lost-time claim frequency is down: Employers across several sectors saw a 5% drop in claims requiring days away from work.
Net written premiums dropped 3.2%: Reflecting lower overall incident volume and increased competition among insurers.
Claim severity increased by 6%: Medical inflation, litigation, and complex injuries are driving higher payouts per claim.

What does this mean for your business?

You’re still at risk of Workers’ Comp costs rising even if you’ve reduced the number of claims. Many organizations don’t realize that just one severe injury can increase their E-Mod, elevate premiums, and trigger additional scrutiny from insurers or regulators.

That’s why the most effective risk strategies in 2025 are rooted in data-driven visibility. You need to monitor trends, identify risk patterns, and target resources where they’ll make the biggest impact.

Get Our Free Tool

Download our Loss Trend Dashboard Template to track your company’s performance across key workers’ comp metrics:

✔ Frequency vs. Severity
✔ Total claim costs by category
✔ Leading causes of injury

This tool pairs perfectly with our V360 Risk Assessment. Use it to establish a baseline before we arrive or monitor progress after your tailored action plan begins.

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