Many employers could end up paying lower workers’ compensation insurance premiums in 2016. 

Pending approval of the Connecticut Insurance Department, rates for policies purchased in the normal, or voluntary, market will decline by 3.9% overall; rates for assigned risk policies will drop by 6.3%.

Costs for self-insured companies will likely decline as well, since their costs generally mirror those for insured businesses.

The rate changes are proposed by the National Council on Compensation Insurance Inc. (NCCI), which analyzes and recommends workers’ compensation rates for insurers in more than 40 states.

The proposed rates are “pure premium” rates, which do not include costs associated with administration, premium taxes, and other expenses—nor do they take companies’ claims experience into consideration.

Rates will take effect for policies as they are purchased or renewed on or after Jan. 1, 2016.

Here’s how the proposed rates break down by industry:

Industry                  Voluntary               Assigned
                    Risk Market

Manufacturing        - 3.5%                     - 5.9%

Contracting             - 6.0%                     - 8.4%

Office & Clerical     - 6.3%                     - 8.6%

Goods & Services  - 3.0%                     - 5.5%

Miscellaneous       - 1.4%                     - 3.9%

Overall                   - 3.9%                      - 6.3%

For more information, contact CBIA’s Louise DiCocco at 860 244.1169 or