Florida 6.8% Workers’ Compensation Rate Cut Officially Approved

Florida Insurance Commissioner Kevin McCarty has issued a final order approving the National Council on Compensation Insurance’s (NCCI) amended rate filing for workers’ compensation insurance rates that will become effective Jan. 1.

The 6.8 percent rate decrease marks the seventh annual consecutive drop in worker’s compensation rates since 2003, the year the Florida Legislature passed reforms of the workers’ compensation system.

McCarty had issued an order on Oct. 15 finding the 6.8 percent reduction in NCCI’s original rate filing justified, but he took exception to some of NCCI’s methodologies used in determining that rate; including its calculation of policyholder dividends, cost of capital, investment yields, minimum premiums and proposed roofing rate. That preliminary order requested NCCI to modify its original filing and resubmit it, which NCCI did on Oct. 19.

With this rate change, the cumulative overall statewide average rate decrease since 2003 will be more than 63 percent.

The overall average rate impact of the 6.8 percent overall reduction at an industry group level beginning Jan. 1, 2010 will be as follows: Manufacturing, -4.7%; Contracting, -10.8%; Office/Clerical, -6.2%; Goods and Services, -3.8% and Miscellaneous, -6.7% .

Source: Florida OIR

Latest Comments

• October 27, 2009 at 3:24 am

  tigertail says:

  The rising loss ratios, falling revenues and descending profits (if any) of the major Florida WC players in about 6 months. Even now, FCCI is losing it's a$$. Others to follow... read more
• October 27, 2009 at 1:19 am

  Joe says:

  Will we be bailing out the WC carriers next?
• October 27, 2009 at 12:40 pm

  Bill says:

  The rate decreases along with the downturn in construction over the last 4 years has devastated broker income in Florida. Oh well we must sell our way out of this one as well.... read more