Wisconsin Sees 4% Gain in Overall Average of Workers’ Comp Rates

Following four consecutive years of decreasing overall premium rates, Wisconsin Insurance Commissioner Connie L. O’Connell announced the approval by her office of a 4-percent increase of the overall average workers’ compensation rate for the upcoming year.

According to O’Connell, the overall rate increase is a reflection of an increase in anticipated future workers’ comp claims and the increase is modest when compared to current rising medical costs.

The change in the overall workers’ comp rate, which is calculated by the Wisconsin Compensation Rating Bureau (WCRB) and approved by the Wisconsin Office of the Commissioner of Insurance (OCI), is the average change in the premiums paid by all classes of jobs throughout Wisconsin. Not all industries, therefore, will see a rate increase and some will actually experience a decrease in premium rates.

According to data from the National Council on Compensation Insurance (NCCI), which analyzes data regarding workers’ compensation, Wisconsin’s workers’ comp rate mirrors claims projections and trend data with increases in some job classifications and a steady or decreasing rate in other classifications.

The NCCI also analyzes workers’ comp data from surrounding midwestern states. However, because Illinois, Missouri, Michigan and Iowa will not be changing their workers’ comp rates until the beginning of next year, Wisconsin’s current rates cannot be properly compared to surrounding state’s rates at this time.