Workers’ Compensation Rates Fall for Eighth Year
Connecticut employers will see workers’ compensation premiums decrease for an eighth consecutive year in 2022.
The Connecticut Insurance Department approved an average overall rate decrease of 14.1% for the voluntary market and a drop of 8.2% for the assigned risk market.
The new rates—for policies renewing on or after Jan. 1, 2022—represent a significant change from last year, which saw a 1.8% decline in the voluntary market and a 1.4% cut in the assigned risk market.
The department accepted recommendations from the National Council on Compensation Insurance, which analyzes and recommends rate adjustments in more than 40 states.
NCCI based their recommendations on premium and loss experience for policy years 2018 and 2019.
“Connecticut’s lost time claim frequency has declined over the most recent nine policy years,” NCCI noted in its recommendations, “which has contributed to the state’s indemnity and medical loss ratios over this period.”
NCCI excluded reported COVID-19 related claims when making its recommendations “to better reflect the conditions likely to prevail in the filing’s proposed effective period beginning Jan. 1, 2022.”
Rate cuts vary by industry classification, ranging from 13.2% for manufacturing to 16.6% for office and clerical work in the voluntary market.
In the assigned risk market, premium decreases range from 7.2% for manufacturing to 10.8% for office and clerical work.
CBIA’s John Blair said the latest annual cuts in workers’ compensation insurance rates “further demonstrate that Connecticut workplaces have gotten safer and safer over the last decade.”
“We are seeing an ongoing decrease in the number of workplace injuries and claims filed and, on average, lower medical costs per claim,” he said.
“The steady decline in loss costs and assigned risk rates is helping businesses better control workers’ compensation costs, always a significant operating expense.”
Total workers’ compensation premium costs for Connecticut employers have fallen more than $300 million over the last eight years.
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