The continuing strife in Iraq and Afghanistan and its effect on the insurance and employer communities is the subject of an excellent monograph by Robert Hartwig of the Insurance Information Institute. Hartwig notes as the returning veterans are reintegrated into the working community, employers will face challenges addressing the needs of vets with physical and/or mental health problems resulting from the conflict.

The Americans with Disabilities Act requires employers to make reasonable accommodations for employees with disabilities. And, with over 15,000 servicemen and women injured to date, and about 30% of all troops serving in these areas citizen soldiers - either from the National Guard or Reserves - many will come back to employers who will need to address their unique circumstances.

The impact may well have a significant impact on workers compensation. According to Dr. Hartwig, workplace claims arising from injuries suffered during these conflicts will be covered by workers compensation insurance. Many of the states have shut down their Second Injury Funds, financial pools designed to cover injuries arising from previous claims. Now, with these funds disappearing, the financial liability for claims related to wartime injuries will be the responsibility of workers comp insurers and self-insured employers.

Taking into account the Pentagon's plans through 2009, present troop levels and injury rates, Hartwig predicts more than 60,000 wounded troops will be returning from Iraq and Afghanistan.

What does this mean for you?

A "hidden tax" on insurers, adding to the total cost of these conflicts.