Predicting the future doesn’t require a crystal ball and magic skills; it only requires an understanding of trends across the industry. Recently, the team at CorVel shared what they see coming in the next year or so across workers’ compensation.
Karen Thomas, Vice President, Clinical Solutions
Workers’ compensation will place greater emphasis on managing recovery, not just the claim.
For decades, the industry has focused heavily on the mechanics of a claim: transactions, bills, authorizations, appointments, and documentation. In 2027, automation will continue taking on more routine administrative work, giving clinicians and claims professionals more time to focus on recovery. That means engaging the injured worker, coordinating care, removing barriers, and restoring function. While early intervention remains essential, the next evolution in workers’ compensation will be delivering more targeted clinical support based on each injured worker’s changing recovery needs. That requires knowing who needs help, what kind of help, and when it will matter most, while reassessing risk as the claim progresses. Organizations will pay closer attention to how behavioral health factors influence physical recovery, including fear of reinjury, anxiety, and concerns about pain or returning to work. Our analysis found that workers’ compensation claims involving a mental health or psychosocial diagnosis had an average duration 1.9 times longer than indemnity claims without those diagnoses. Recognizing and addressing these barriers early can help prevent unnecessary delays in recovery and return to work.
Ryan Murphy, Vice President, Product, Enterprise Claims
Claims technology will be measured by how much it improves the work of claims professionals and the injured worker experience.
As claims technology advances in 2027, its value will increasingly depend on whether it helps specialists manage their work more effectively and spend more time communicating with injured workers and liability claimants. Regardless of claim type, people want transparency into the process, including where their claim stands and what comes next. That means keeping them informed throughout the claim, whether it’s about return to work, medical updates, repairs or settlements. Text messaging is proving especially effective, and AI can help specialists manage information and respond more efficiently while leaving decisions in their hands. Newer adjusters will need to develop the judgment to evaluate AI-generated information rather than simply accept it. Teams that find the most success will continue testing new capabilities, learning what works and moving away from tools that don’t deliver meaningful improvements.
Lara Heal, Senior Vice President, Care Management
The time it takes to make care decisions will become an increasingly important factor in claim outcomes.
In 2027, workers’ compensation organizations will place greater emphasis on how the timing of care decisions affects recovery, return to work, and overall claim outcomes. Delays in referrals, authorizations, communication, and clinical intervention can slow treatment, making it
increasingly important to get the right information and clinical expertise to the people making those decisions early in the claim. Care management cannot function without technology, and it cannot succeed without the human touch. The information technology gathers at the start of a claim will help claims professionals identify risk earlier, prioritize resources more effectively, and develop care strategies as the claim progresses. Maintaining a human connection means meeting each injured worker where they are, whether through a personal conversation or communication enabled through digital tools. Organizations that achieve the best outcomes will be those that combine timely insights, proactive intervention, and meaningful human engagement.
CJ Cypcar, Senior Vice President, Product Development
The industry will begin measuring success by what happens across the whole claim.
An injured worker experiences a claim as a whole, yet the industry has traditionally evaluated performance through individual services and outcomes after the fact. In 2027, advances in AI and connected intelligence will help claims organizations better understand how medical, clinical, and claims decisions collectively shape recovery, return to work, and claim duration. With that broader perspective, claims professionals can recognize emerging risks, identify opportunities for earlier intervention, and make more informed decisions throughout the life of a claim. As these capabilities develop, transparency, consistency, and human expertise will remain essential. The greatest value will come from putting that intelligence to work, helping injured workers navigate recovery while improving overall claim outcomes.
