Finity has warned in a new report that workers’ compensation claims are set to rise as the country looks to reopen, moving away from its tough virus elimination strategy to “living with COVID-19”.

The actuarial firm says its projections show there will be just over 100,000 infections in workers leading to around 10,000 hospitalisations, of which 700 are admitted to intensive care units.

Up to 7000 or an even higher number of long COVID cases may develop, with sufferers fully off work, and twice as many again will still be on reduced work seven months later. Long COVID refers to ongoing symptoms after the resolution of the initial infection.

In an environment where ongoing weekly benefits are available for those with workplace-based infections, long COVID cases have the potential to be financially significant.

“This raises the possibility of there being a significant surge in claims that could overwhelm insurer claims acceptance processes,” the report said.

“Assuming such a scenario actually plays out, the cost of paying for respiratory ward and [intensive care unit] stays, plus longer term weekly compensation, means the increased claims cost could be material,” the report said.

Finity says using $1400 as an amount of weekly compensation, the national lost income bill lies somewhere between $1 million and $8 million per week depending on how high the numbers of long COVID get.

“We don’t know exactly the number [that will be compensated],” Principal and Director Aaron Cutter told insuranceNEWS.com.au. “What we’ve tried to put a shining light on is the long COVID group.”

Finity says for an infection to be considered compensable, it will need to meet the prescribed statutory test to be regarded as having occurred “out of or in the course of employment”.

Click here for the report.