Workers’ compensation rates for 2019 reveal a trend of decreased rates across multiple states as a variety of factors are positively affecting the employment industry, such as safer workplaces and increased employment. The National Council on Compensation Insurance (NCCI) attributed the improved industry outlook to “safer workplaces and increased use of automation and innovative technologies.” Businesses are seeing both a decrease in the number of claims as well as a drop in workers’ compensation insurance premium rates.
The Connecticut Insurance Department (CID) approved a nearly 17 percent decrease in rates for workers’ compensation insurance in 2019. This is the fifth consecutive year that Connecticut has lowered workers’ compensation rates, amounting to a roughly 50 percent overall decline. The CID attributes this trend to decreases in the number of claims filed and workplace injuries, as well as lower medical expenses paid on claims filed.
North Carolina is experiencing a similar drop in workers’ compensation rates. The North Carolina insurance commissioner has approved a 17.2 percent drop in rates for 2019. North Carolina saw a 8.5 percent rate reduction in 2016 and a 12.5 percent decrease in 2017, demonstrating that the state continues to accelerate their rate decreases. The North Carolina Rate Bureau credits the lower amounts of claims being filed and being paid out for this positive trend.
Florida is also experiencing a consistent decline in the number of workers’ compensation claims. The Office of Insurance Regulation approved a 13.8 percent decrease in rates for 2019. This decrease may also be attributed to improved employment numbers, according to the National Federal of Independent Business in Florida.
The Kansas Insurance Department plans two rate reductions for 2019: 6.4 percent for voluntary workers’ compensation base rates and 10.8 percent for other plans falling under the Kansas Assigned Risk Plan. The Kansas Insurance Department points outs that the state has experienced nearly a 45% cumulative decrease in the voluntary rate and 50% for the assigned risk rate since 2015.
Other states are looking forward to lower rates as well in 2019. The Idaho Department of Insurance announced a 4.2 percent workers’ compensation rate reduction following a slight decline in the number of filed claims as well as the cost of filed claims.
The Indiana Department of Insurance approved a 7.6 percent drop in rates resulting from fewer work-related injuries as well as positive economic and employment data. Indiana maintains some of the lowest workers’ compensation insurance rates in the country, according to the Oregon Worker’s Compensation Premium Rate Ranking report.
In conclusion, the overall trend indicates that business will pay lower rates for their workers’ compensation plans in 2019 as a result of the growing economy, lower unemployment rates, safer workplaces, fewer claims, and less costly claims for workplace injuries.
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This article is provided for educational purposes only. It is not to be interpreted as legal advice or an opinion in regard to any topic discussed. The article should not be used as a substitute for legal advice from a licensed attorney in your state. Every situation is different and circumstances vary widely depending on the governing state law, policy provisions, and related considerations.