NCCI Proposes 2023 Workers’ Compensation Rate Cuts
The National Council on Compensation Insurance has recommended a 3% overall average reduction in workers’ compensation premium rates for the voluntary market in 2023.
NCCI’s September filing with the Connecticut Insurance Department also recommends no changes in rates for the assigned risk market.
The council, which analyzes and recommends rates in more than 40 states, recommended the department approve both rate proposals, effective Jan. 1, 2023 for new and renewing policies.
If approved by regulators, Connecticut workers’ compensation rates will fall for a ninth consecutive year.
NCCI’s recommended rate reductions vary by industry classification, ranging from 5.3% for office and clerical to 0.7% for miscellaneous industries in the voluntary market.
Proposed Voluntary Market Reductions
|Industry Group||Average Change||Maximum Increase||Maximum Decrease|
|Office & Clerical||-5.3%||+15%||-25%|
|Goods & Services||-2.8%||+17%||-23%|
NCCI excluded COVID‐19‐related workers’ compensation claims “from the data on which this filing is
based to better reflect the conditions likely to prevail during the proposed effective period.”
“Despite a small uptick in the latest policy year, Connecticut’s lost-time claim frequency has generally declined when viewed over the most recent eight years,” NCCI noted in its filing.
The filing does add that the improved loss ratio experience from 2019-2021 “may reflect trends that could persist into the future.”
“Such persistent factors include the shift to remote work and reduced business travel affecting some sectors,” the filing noted.
In a Sept. 30 letter to CID commissioner Andrew Mais, CBIA vice president of public policy Eric Gjede urged the department to approve NCCI’s recommendations.
“Reductions in certain types of injuries and claims demonstrate that Connecticut employers continue their commitment to creating the nation’s safest possible working conditions for employees,” he wrote.
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