As the American workforce continues to age, employers face a major shift in the dynamics of workplace injury risks and costs.
While older workers bring critical experience, reliability, and institutional knowledge, they also present new challenges for employers and insurers in the form of higher workers’ compensation claim severity, longer recovery durations, and more complex medical needs.
This rise in cost and complexity is driving the industry to rethink how it manages older workers’ claims. Experts pointed to long-term demographic trends and rising medical complexities as converging forces in the workers’ compensation landscape.
“We’re going to see many more workers aged 55 and older in the workforce by 2033,” said Claude Howard (pictured top left), vice president of workers’ compensation at Travelers.
“That population is growing and so is their share of injury claims. In our data, workers aged 50 or older make up 41% of injured employees.”
Industry data, including from the National Council on Compensation Insurance (NCCI) and the Workers Compensation Research Institute (WCRI), indicate the injury frequency tends to decrease with the age of workers.
According to Mark Walls (pictured top right), chief marketing officer at Safety National, older workers tend to have fewer injuries because they’re more cautious and experienced.
But when they do get hurt, the injuries tend to be more severe and take longer to heal, largely due to comorbidities like diabetes, hypertension, and arthritis.
“If someone has one comorbidity, the claim cost doubles,” Howard said. “With two or more, it increases fivefold.”
The combination of aging workers, longer disability durations, and complex claims is inevitably driving up costs.
Although drug pricing and tariffs pose some future risk, they currently represent a small portion of medical spend. According to Howard, the larger cost drivers are outpatient and physician services, especially when care isn’t optimized early.
Rich Ives (pictured below), SVP of claims for business insurance at Travelers, underscored the importance of timely and tailored medical intervention.
“Getting the right care at the right time helps shorten recovery and reduce costs,” Ives told Insurance Business.
At the same time, younger, inexperienced workers add a different risk dimension to the workplace.
In the aftermath of the COVID-19 pandemic, Travelers said it saw a spike in injuries among employees with less than one year of experience in their current role. These workers accounted for 36% of injury claims, despite comprising only about 20% of the workforce.
Ives explained that massive turnover might have contributed to this jump. “People changed companies, roles, or even industries post-pandemic,” he pointed out. “That lack of familiarity is a major driver of injuries.”
However, language barriers and inconsistent training may also contribute. Ives noted an increase in Travelers claims involving body parts getting caught in equipment or struck by objects.
“These are telltale signs of people not following, or not understanding, safety protocols,” Ives said.
While older workers take longer to recover due to medical complexity, younger workers are also staying off the job longer, albeit for different reasons. Walls (pictured below) observed that younger generations place a higher premium on holistic well-being.
“Younger employees are more likely to wait until they feel fully recovered, mentally and physically, before returning to work,” Walls said. “That’s extending disability durations even in less severe cases.”
Walls also noted the growing role of mental health in workers’ comp. “We’re seeing an increase in accepted mental health claims. Younger generations are more open about these issues, and state laws are evolving to reflect that.”
What does this all mean for employers? To reduce injury risks in both younger and older workers, the experts said businesses need to prepare for long-term claims management and adopt a proactive and holistic approach to workplace safety. That includes cultivating a safety-first culture, consistent onboarding, and empowering employees to speak up when they feel unsafe.
“When we talk about a ‘culture of safety,’ we mean more than just checklists,” Ives said. “It means making sure every employee understands the processes, feels confident in what’s expected of them, and knows it's OK to speak up if something feels unclear or unsafe.
“It's also about making employees feel genuinely cared for. Think about a new hire: they want to prove themselves, show they’re capable, and often try to do things on their own. But it’s important they know that if they have questions or concerns, help is available. Supportive environments encourage not just competence but safe behavior.”
Despite the challenges, the aging workforce also presents opportunities for employers. Older workers often provide organizations with stability, deep industry knowledge, and a strong work ethic.
“People are living longer and staying healthier,” said Wall. “Many older workers are highly productive and safe. Some even return to work in lower-intensity roles because they enjoy it.”
However, the experts stressed that understanding their risks and investing in proactive, age-conscious safety strategies will be critical for employers as the workforce continues to age.
