Many employers may pay higher workers’ compensation insurance premiums in 2013. Pending approval of the Connecticut Insurance Department, rates for policies purchased in the normal, or voluntary, market will increase by 7.1% overall; rates for assigned risk policies will rise by 0.4%.

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

Workers’ compensation rates are on the rise in Connecticut due to several factors:

  • An increase in lost-time claims, which may indicate a lack of available positions for injured workers to return to  
  • Significant increases in the average medical cost per case, which may reflect both more severe injuries and increases in the cost of care.
  • The rise in medical and indemnity benefits at a pace faster than wages.

The rate changes are proposed by the National Council on Compensation Insurance Inc. (NCCI), which analyzes and recommends workers’ comp 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, 2013.
Here’s how the proposed rates break down by industry.

Industry                Voluntary              Assigned
                              Market
                  Risk Market

Manufacturing        + 6.8%                   + 0.1%

Contracting            + 9.9%                   + 3.0%

Office & Clerical      + 0.9%                   – 5.4%

Goods & Services     + 7.6%                   + 0.9%

Miscellaneous          + 8.8%                   + 2.0%

Overall       + 7.1%        + 0.4%

For more information, contact CBIA’s Bonnie Stewart at 860.244.1925 or bonnie.stewart@cbia.com.