OIR to Receive Public Input on NCCI Workers’ Compensation Filing
The Florida Office of Insurance Regulation (OIR) will hold a public hearing at 10:00 a.m. on October 14 to receive input regarding the National Council on Compensation Insurance’s (NCCI’s) recent rate filing proposing an average decrease of 4.9%.
According to NCCI, in 2020 the workers’ compensation insurance industry posted its fourth consecutive year of underwriting results under 90%. NCCI attributes these results to a combination of underwriting discipline, declining frequency, moderating severity, and reserve adequacy. NCCI observes that the decline in frequency is due to technological advances, safer workplaces, improved risk management, and a long-term shift from manufacturing to service sectors.
NCCI points out that its last annual rate filing did not include COVID-19 claim data. The filing also did not include explicit adjustments for the potential impact of a pandemic. Likewise, the current filing also does not include an explicit adjustment. However, after review the subject, NCCI determined that the most appropriate way of reflecting exposures to pandemics is through the adoption of a separate catastrophe provision. NCCI has submitted a filing separate from its annual rate filing to address the proposed catastrophe provision.