NCCI Calls for 2027 Workers’ Comp Rate Cuts

The National Council on Compensation Insurance has recommended a 4.9% overall average reduction in workers’ compensation premium rates for the voluntary market in 2027.

NCCI’s Sept. 29 filing with the Connecticut Insurance Department also included a proposed 5.8% average cut in assigned risk market rates.

The council, which analyzes and recommends rates in more than 40 states, recommended the department approve both rate proposals, effective Jan. 1, 2027 for new and renewing policies.

If approved by regulators, Connecticut workers’ compensation rates will fall for the 13th consecutive year.

Last year, CID approved NCCI’s recommended average 3.8% cut in voluntary market rates and 0.4% decrease in assigned risk plan rates.

Proposed Average Changes

Industry Group	Voluntary Market	Assigned Risk Market
Manufacturing	-5.5%	-6.4%
Contracting	-6%	-6.9%
Office & Clerical	-3.6%	-4.5%
Goods & Services	-4.4%	-5.3%
Miscellaneous	-4.9%	-5.8%
Overall	-4.9%	-5.8%

NCCI’s recommended rate reductions vary by industry classification, ranging from 4.4% for goods and services to 6% for contracting in the voluntary market.

In the assigned risk market, average proposed rate reductions range from 4.5% for office and clerical to 6.9% for contracting.

NCCI based its latest recommendations on premium and loss experience for the 2023 and 2024 policy years.

Safe Workplaces

In its filing, the organization said that “the primary driver of the proposed change is improved experience.”

“Connecticut lost-time claim frequency has observed a general long-term decline,” the filing noted.

“The indemnity average cost-per-case has been relatively flat over the long term, although with moderate year-to-year variability, while the medical cost per case have been declining, on average, with significant year-to-year variability.”

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

CBIA president and CEO Chris DiPentima said the long-term decline in rates were reflection of the state’s workers’ compensation system and employers’ commitment to safety.

“Connecticut workplaces are among the safest in the country, as seen with this latest round of rate recommendations,” said CBIA president and CEO Chris DiPentima.

“And this sustained period of rate cuts clearly demonstrates why it is so important to maintain and protect Connecticut’s well-functioning workers’ compensation system.”

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

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For more information, contact CBIA’s Jack DeOliveira.