Regulators Approve Workers’ Compensation Rate Cut
Workers’ compensation premium rates will drop 3% for the Connecticut voluntary market in 2023.
The Connecticut Insurance Department approved the rate cut Oct. 17, accepting the National Council on Compensation Insurance’s recommendations that were filed in September.
CID also approved NCCI’s recommendation to leave assigned risk market rates unchanged.
The council analyzes and recommends rates in more than 40 states.
The changes are effective Jan. 1, 2023 for new and renewing policies, marking a ninth consecutive annual decline in Connecticut workers’ compensation rates.
NCCI’s recommended rate reductions vary by industry classification, ranging from 5.3% for office and clerical to 0.7% for miscellaneous industries in the voluntary market.
Voluntary Market Reductions
|Industry Group||Average Change||Maximum Increase||Maximum Decrease|
|Office & Clerical||-5.3%||+15%||-25%|
|Goods & Services||-2.8%||+17%||-23%|
In a Sept. 30 letter to CID commissioner Andrew Mais, CBIA vice president of public policy Eric Gjede urged the department to approve NCCI’s recommendations.
“Reductions in certain types of injuries and claims demonstrate that Connecticut employers continue their commitment to creating the nation’s safest possible working conditions for employees,” he wrote.
In a statement, Mais noted that the rate cuts “reflect an ongoing decrease in the number of workplace injuries and claims filed.”
CID also approved the following NCCI recommendations:
- Maximum payroll for executive officers or members of limited liability companies increases from $2,900 to $3,000
- Maximum payroll for athletic teams increases from $1,450 to $1,500
- Permissible loss ratio for the assigned risk rate filing increases from 71.3% to 71.5%
- Annual payroll for partners and sole proprietors increases from $75,200 to $78,500
- Current voluntary loss adjustment expense provision increases from 19.9% to 20.1%
- Assigned risk loss cost differential increases to 1.491 (including the impact of the reduction in the assigned risk premium discounts)
- The thirty day advance filing requirement for filings received prior to Jan. 1, 2023 is waived to allow for the adoption of the change in advisory pure premium loss costs
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