AIA Response to the Department of Labor Workers’ Compensation Report

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In response to the Department of Labor’s (Labor) “State Workers’ Compensation Report” the American Insurance Association reaffirmed its belief that the nation’s oldest social insurance program is best administered on the state level.

In response to the Department of Labor’s (Labor) “State Workers’ Compensation Report” the American Insurance Association reaffirmed its belief that the nation’s oldest social insurance program is best administered on the state level. The report was the first national overview of the state compensation system in more than a decade.

“AIA is still reviewing the report, and we welcome any opportunity to explore ways to improve and strengthen the workers’ compensation system,” said Bruce Wood, AIA Vice President. “AIA opposes federal interference in state workers' compensation systems, and we believe that the far better approach, as the record clearly demonstrates, is to debate policy differences in the states.”

The state-based workers’ compensation system is our nation’s oldest social insurance program, predating Social Security by a generation. It is grounded in the economies of the individual states and therefore reflects each state’s economy. The state-based system is thus more sensitive to those changing economies as well as to system imbalances.

“AIA appreciates the need to periodically review the state workers’ compensation system. However, changes and improvements to the workers’ comp system should be debated at the state level where whatever policy balance results, can be more readily fine-tuned as circumstances require,” said Wood.

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Celebrating its 150th year in 2016, the American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 350 insurers that write more than $140 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage for small businesses, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.

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