Workers’ Compensation Premiums Fall for Sixth Year
Connecticut employers will see workers’ compensation premiums decrease for the sixth consecutive year in 2020.
The Connecticut Insurance Department Oct. 30 approved an average overall rate decrease of 2.9% for the voluntary market.
Overall assigned risk market rates will drop an average 4.5%. The new rates are for policies renewing on or after Jan. 1, 2020.
The department accepted recommendations from the National Council on Compensation Insurance, which analyzes and recommends rate adjustments in more than 40 states.
While Connecticut rates will fall for a sixth year, the changes are in the single digits after three consecutive years of double digit declines.
Voluntary rates decreased 16.8% last year, following a 14% drop in 2018 and 10.9% the previous year.
‘Good for Business’
Any drop in the cost of doing business is positive news for Connecticut companies, says CBIA’s Louise DiCocco.
“While we’d prefer to see premiums decrease as much as they did in 2018 and 2019, anything that lowers costs is good for Connecticut businesses,” she said.
“Workers’ compensation insurance is a significant expense for all companies, and any decrease, no matter the size, is welcome.”
CID commissioner Andrew Mais noted the consistent decrease in premium costs.
“The loss costs and assigned risk rates have steadily gone down over the last six years—and has helped businesses better control workers’ compensation insurance costs—one of their critical operating expenses,” he said.
“This reflects an ongoing decrease in the number of workplace injuries and claims filed and, on average, lower medical costs per claim.”
NCCI recommended a 2.9% overall rate reduction for the voluntary market and a 4.5% reduction for the assigned risk market.
Rate cuts vary by industry classification, ranging from 1.5% for manufacturing to 5.9% for contracting in the voluntary market.
Assigned risk rates for 2020 range from a 3.2% for manufacturing to 7.5% for contracting.
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