Workers’ Compensation Rates Will Drop in 2025

Connecticut employers will see lower workers’ compensation costs in 2025, with state regulators approving recommended premium rate cuts Nov. 20.

The Connecticut Insurance Department approved an average 6.1% cut in voluntary market rates and a 6.2% decrease in assigned risk plan rates.

Regulators approved the National Council on Compensation Insurance’s recommendations that were filed in September, marking an 11th consecutive year of rate cuts.

The council, which analyzes and recommends rates in more than 40 states, recommended the department approve both rate proposals, effective Jan. 1, 2025 for new and renewing policies.

The council analyzes rates in more than 40 states, making recommendations based on past and prospective loss experiences.

Rate Reductions

Industry Group	Voluntary Market	Assigned Risk Market
Manufacturing	-8%	-8.1%
Contracting	-6.9%	-7%
Office & Clerical	-5.6%	-5.7%
Goods & Services	-5.2%	-5.3%
Miscellaneous	-5.7%	-5.8%
Overall	-6.1%	-6.2%

In a Sept. 26 letter to CID commissioner Andrew Mais, CBIA senior public policy associate Pete Myers urged the department to adopt the NCCI recommendations.

Average voluntary market rate cuts range from 2.3% in 2015 to 16.8% in 2019. In the assigned risk market, average cuts range from 0.5% in 2015 to 19.8% in 2019.

Next year’s rate reductions for the voluntary market vary by industry classification, ranging from 5.2% for miscellaneous industries to 8% for manufacturing.

“Workplace safety continues to improve, and business owners are better able to manage costs and invest the savings back into their operations.”

Gov. Ned Lamont

In the assigned risk market, rate cuts range from 5.3% for goods and services to 8.1% for manufacturing.

The decade-plus span of declining workers’ compensation rates has seen cumulative savings of more than $320 million in reduced premium costs for employers.

“These positive trends are good news for Connecticut employers and their workers,” Gov. Ned Lamont said.

“Workplace safety continues to improve, and business owners are better able to manage costs and invest the savings back into their operations.”

Additional Changes

Regulators also approved the following NCCI recommendations:

• Maximum payroll for executive officers or members of limited liability companies increases from $3,200 to $3,300
• Maximum payroll for athletic teams increases from $1,600 to $1,650
• Permissible loss ratio for the assigned risk rate filing increases from 72.4% to 74%
• Annual payroll for partners and sole proprietors increases from $81,900 to $86,000
• Current voluntary loss adjustment expense provision increases from 20.4% to 21.9%
• Assigned risk loss cost differential increases to 1.550
• The 30-day advance filing requirement for filings received prior to Jan. 1, 2025 is waived to allow for the adoption of the change in advisory pure premium loss costs

---

For more information, contact CBIA’s Pete Myers (860.244.1921).