NCCI Proposes Major Workers’ Compensation Rate Reductions
For the third straight year, Connecticut employers can expect double-digit savings on their workers’ compensation premium rates.
The National Council on Compensation Insurance has recommended a 16.8% overall average rate reduction in 2019 for the voluntary market.
NCCI’s September filing with the Connecticut Insurance Department also includes a proposed 19.8% overall reduction for the assigned risk market.
The council, which analyzes and recommends rates in more than 40 states, is recommending the department approve both rate reductions, which would be effective for policies renewing on or after Jan. 1, 2019.
CBIA’s Louise DiCocco urged regulators to approve NCCI’s recommendations.
“Workers’ compensation insurance represents a significant cost for all Connecticut businesses, small and large,” DiCocco said.
If NCCI’s recommendations are approved, it would be the fifth consecutive year workers’ compensation rates have declined in Connecticut. NCCI's recommendation for lower rates is welcome news for the state's employers at a time when most other expenses continue to rise.
The Insurance Department is accepting public comments on proposed rates through Oct. 19.
Comments may be emailed to CID’s Cathleen Cirone or mailed to the Connecticut Insurance Department, P.O. Box 816, Hartford, 06142-0816.
Manufacturers could see a 17.5% reduction in the voluntary market and 20.4% in assigned risk.
NCCI's recommendation for lower rates is welcome news for the state's employers at a time when most other expenses continue to rise.
Claim Frequency Declines
NCCI noted Connecticut's consistent decline in claim frequency since 2010, and that the state's loss ratio history has also declined since 2011.
"The frequency of lost-time claims in Connecticut continues its long-term downward trend," NCCI wrote in its filing.
It also noted "indemnity and average medical cost per case figures have declined in recent years."
Per case indemnity costs continue a slow but consistent decline, from $31,611 in 2013 to $29,193 in 2016.
"NCCI's recommendation for lower rates is welcome news for the state's employers at a time when most other expenses continue to rise," DiCocco said
The department last year approved NCCI's recommended 14.1% overall rate reduction and 12.6% reduction for assigned risk markets for 2018.
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