The National Council on Compensation Insurance (NCCI) last week delivered a workers compensation loss cost filing to the Connecticut Insurance Department.
Based upon its review of the most recently available data, NCCI has proposed an overall average workers compensation loss cost level change of +3.2 percent and assigned risk rate change of +5.7 percent to become effective January 1, 2014.
NCCI said primary drivers of the proposed loss cost level change are:
• Average costs for both indemnity and medical remain high and are growing faster than wages
• Continuing declines in claim frequency have somewhat offset rising costs
• The medical cost per case for lost time claims has increased dramatically over the last eight years.
NCCI said overall loss costs have decreased 36 percent since the 1994 reforms. NCCI also noted that the Residual Market Plan premium market share experienced an uptick in 2012 from 3.8 percent to 5.1 percent, which is below the average of 5.3 percent for NCCI plan administered states.
The average voluntary loss cost level changes proposed for each industry group are: +3.7 percent for manufacturing; +2.5 percent for office and clerical; +2.3 percent for goods and services; +3.5 percent for contracting; and +5.2 percent for miscellaneous.
The filing is currently pending review by the Connecticut Insurance Department.
Source: The National Council on Compensation Insurance