The National Council on Compensation Insurance (NCCI) recently delivered a workers’ compensation loss cost filing to the Rhode Island Department of Business Regulation.
Based upon its review of the most recently available data, NCCI has proposed on Nov. 25 an overall average workers compensation loss cost level change of +3.0 percent to become effective August 1, 2014. Key components in the +3.0 percent overall change request are: +2.6 percent for experience, trend and benefits; and +0.4 percent for loss adjustment expenses.
The following are key observations issued by NCCI:
• Continued deterioration in claims experience in Rhode Island
• Following two years of increases, lost time claim frequency declined in the latest year.
• Claim severity growth has abated for both indemnity and medical.
• Overall loss costs are approximately 47 percent lower since the 1994 reforms.
The average voluntary loss cost level change proposed for each industry group are as follows: -0.5 percent for manufacturing; +0.6 percent for office and clerical; +5.2 percent for goods and services; +2.9 percent for contracting; and +3.1 percent for miscellaneous.
The filing is currently pending review by the R.I. Department of Business Regulation.
Source: The National Council on Compensation Insurance (NCCI)