NCCI Submits Workers Compensation Rates
The National Council on Compensation Insurance (NCCI) has delivered its annual workers compensation rate filing to the Office of Insurance Regulation (OIR). The filing provides for an overall workers compensation rate level increase of 6.1%. The proposed effective date is January 1, 2013. Even with the proposed increase, the filing still reflects a significant reduction in rate levels following reforms made almost a decade ago.
The rate change attributable to changes in experience and trend is 6.8%, offset slightly by a change in expenses and other factors.
Recent NCCI filings reflect that the experience improvements following the 2003 reform have ended and rates now reflect the new post-reform baseline. Even so, the cumulative impact of the rate decreases after the 2003 reform was -64.7%. Including the 1/1/13 proposed increase, Florida workers compensation rates would be down 56% from a decade ago. Prior to the legislative reforms, Florida consistently ranked among the highest states in the country or workers’ compensation rates. Following the reforms, Florida is much more competitive in this area.
The Office of Insurance Regulation expects to hold a public hearing on the filing in early October.