The Connecticut Insurance Department has approved an 11.9 percent average overall rate increase for policies in the workers’ compensation assigned risk plan, and a 15 percent “differential charge” which will be applied to all policies in the plan.
The decision represents something of a compromise between proposals put forth by the National Council for Compensation Insurance (NCCI) and the Professional Insurance Association of Connecticut (PIACT).
The NCCI had called for removing the existing 25 percent surcharge on assigned risk policies with premium of $5500 or more and replacing it with an across the board 25 percent increase to all residual market policies.
PIACT President Jim Benson stated that his organization felt this proposal “would have unfairly targeted small businesses.” He cited the potentially harmful effect on the state’s economy which could have resulted if the NCCI plan had been adopted, and indicated that, “Applying a surcharge to policies in the market based on loss experience would have been a more reasonable approach.”
Benson stated, however, the, “PIACT is pleased with the decrease and its impact on rates for small business.”
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