Workers’ Comp Premium Rates Will Drop in 2017

Connecticut employers will see a 10.9% reduction in workers’ compensation premium rates next year.
The state’s Insurance Department today announced approval of a September filing by the National Council on Compensation Insurance seeking the reductions.

The decision covers both the voluntary loss and assigned risk markets for policies renewing on or after January 1, 2017.
Loss cost reductions vary by industry classification, ranging from -9.1% for goods and services to -12.7% for contracting.
In its filing, NCCI cited a continuing decline in claim frequency, an improvement in combined ratios, and decreasing medical and indemnity costs.
The council reported that workers’ comp claims dropped four straight years in Connecticut through 2014.
Connecticut’s total benefits costs were split almost evenly between indemnity (51%) and medical benefits (49%) in 2013 and 2014, the years NCCI used for its rate filing request.
Per case indemnity costs fell to $30,916 in 2014, a 1.7% drop from 2013 when costs hit an eight-year high.
Medical costs also declined in 2014, to $28,799 per lost-time case, the first decrease since 2008.
The department approved a 3.9% reduction last November for rates charged this year. Rates dropped 0.6% in 2015, following five consecutive years of increases.

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For more information, contact CBIA’s Louise DiCocco (203.589.6515) | @LouiseDiCocco