Louisiana Commissioner of Insurance Jim Donelon announced that rates for workers’ compensation insurance will decrease in Louisiana effective May 1, 2014.
Commissioner Donelon recently approved a 5.1 percent decrease in workers’ compensation loss costs submitted by the National Council on Compensation Insurance (NCCI). NCCI is a national organization which analyzes workers compensation data and files loss costs or rates in 35 states.
Most workers’ compensation carriers in Louisiana use the NCCI annual loss cost filing to formulate their insurance rates. This loss cost reduction marks a cumulative drop of 35 percent since 2004. The most recent reduction in workers’ compensation loss costs was a 4.3 percent reduction in 2010. Prior loss costs reductions include a 17.4 percent decrease in 2009, an 8.6 percent reduction in 2008 and a 15.8 percent reduction in 2007.
The total Louisiana workers’ compensation market is estimated to be $900 million in total premium.
The top five writers of workers’ compensation insurance in Louisiana in 2012 were Louisiana Workers’ Compensation Corporation with 21.0 percent, Liberty Mutual Group with 12.6 percent, LUBA Casualty Insurance Co. with 8.8 percent, American International Group with 7.4 percent and Zurich Group with 7.2 percent.
Source: Louisiana Department of Insurance