Workers’ Compensation Rates Will Drop 10% in 2024
Connecticut workers’ compensation premium rates will fall for a 10th consecutive year in 2024.
The Connecticut Insurance Department approved the rate cuts Oct. 24, accepting the National Council on Compensation Insurance’s recommendations that were filed in September.
Regulators approved NCCI’s recommended 9.8% average decline in voluntary market rates and an average 10.5% cut in assigned risk rates.
The council analyzes rates in more than 40 states, making recommendations based on past and prospective loss experiences.
The revised Connecticut rates are effective Jan. 1, 2024 for new and renewing policies.
|Industry Group||Voluntary Market|
|Office & Clerical||-9.2%||-9.9%|
|Goods & Services||-11%||-11.7%|
NCCI’s recommended rate reductions for the voluntary market vary by industry classification, ranging from 11% for both manufacturing and goods and services to 6.3% for miscellaneous industries.
In the assigned risk market, rate cuts range from 11.7% for both manufacturing and goods and services to 7% for miscellaneous industries.
The decade-long span of declining workers’ compensation rates has seen cumulative savings of more than $300 million in reduced premium costs for employers.
CBIA president and CEO Chris DiPentima said the rate trend reflected a sustained drop in workplace injuries and workers’ compensation claims.
“Connecticut workplaces grow safer every year as employers continue their commitment to creating the nation’s safest possible working conditions,” he said.
Regulators also approved the following NCCI recommendations:
- Maximum payroll for executive officers or members of limited liability companies increases from $3,000 to $3,200
- Maximum payroll for athletic teams increases from $1,500 to $1,600
- Permissible loss ratio for the assigned risk rate filing increases from 71.5% to 72.4%
- Annual payroll for partners and sole proprietors increases from $78,500 to $81,900
- Current voluntary loss adjustment expense provision increases from 20.1% to 20.4%
- Assigned risk loss cost differential increases to 1.500
- The 30-day advance filing requirement for filings received prior to Jan. 1, 2024 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).
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