Both a national private industry group and the Missouri Department of Insurance agreed the state’s workers’ compensation environment has stabilized, and insurers should reduce rates in 2005, though they disagree on how big the cuts should be. The National Council on Compensation Insurance–a national consortium of workers’ comp insurers–is advising its members that underlying costs should drop 1.3 percent in 2005 in Missouri, while MDI’s independent actuary, David Cox Co., recommended an even larger reduction of 7.7 percent next year in such loss costs that are the primary factor in setting premiums for Missouri employers. Cox said NCCI didn’t give enough weight to the Show Me State’s favorable experience record, included higher-risk employers who will wind up buying from the residual market anyway, and overstated projected costs for legal and claims-handling expenses. Average rates in Missouri rose 1.97 percent in 2004 compared to 14.7 percent in 2003, the lowest level since 2000 and less than the projected inflation rate for 2004.
Topics Missouri
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