Workers’ Compensation Rates Will Fall in 2026

Connecticut employers will see lower workers’ compensation costs in 2026 after state regulators approved a package of recommended premium rate cuts Oct. 27.

The Connecticut Insurance Department approved an average 3.8% cut in voluntary market rates and a 0.4% decrease in assigned risk plan rates.

Regulators approved the National Council on Compensation Insurance’s recommendations that were filed in September, marking an 12th consecutive year of rate cuts.

The council, which analyzes and recommends rates in more than 40 states, recommended the department approve both rate proposals, effective Jan. 1, 2026 for new and renewing policies.

NCCI analyzes rates in more than 40 states, making recommendations based on past and prospective loss experiences.

Rate Reductions

Industry Group	Voluntary Market	Assigned Risk Market
Manufacturing	-5.6%	-2.3%
Contracting	-4.9%	-1.5%
Office & Clerical	+1.3%	+4.9%
Goods & Services	-4%	-0.6%
Miscellaneous	-3.6%	-0.2%
Overall	-3.8%	-0.4%

All industry sectors except office and clerical saw rate cuts—that sector will see a 1.3% increase in the voluntary market and a 4.9% increase in assigned risk.

Average voluntary market rate cuts ranged from 3.6% for miscellaneous industries to 5.6% for manufacturing.

In the assigned risk market, rate cuts ranged from 0.2% for miscellaneous to 2.3% for manufacturing.

“This clearly demonstrates why it is so important to maintain and protect Connecticut’s well-functioning workers’ compensation system.”

CBIA’s Chris DiPentima

The decade-plus span of declining workers’ compensation rates has seen cumulative savings of more than $320 million in reduced premium costs for employers.

“Connecticut workplaces are among the safest in the country, as reflected by this latest round of premium declines,” said CBIA president and CEO Chris DiPentima.

“And this sustained period of rate cuts clearly demonstrates why it is so important to maintain and protect Connecticut’s well-functioning workers’ compensation system.”

Additional Changes

Regulators also approved the following NCCI recommendations:

• Maximum payroll for executive officers or members of limited liability companies increases from $3,300 to $3,400
• Maximum payroll for athletic teams increases from $1,650 to $1,700
• Permissible loss ratio for the assigned risk rate filing increases from 72.4% to 74%
• Annual payroll for partners and sole proprietors increases from $86,000 to $89,200
• Current voluntary loss adjustment expense provision increases from 21.9% to 22.2%

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For more information, contact CBIA’s Pete Myers (860.244.1921).