The Maine Bureau of Insurance has modified the request of the industry’s National Council on Compensation Insurance for an average 1.8 percent increase in workers’ compensation rates for policy year 2006 to 1.2 percent. NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage in Maine.
The rates are effective Jan. 1, 2006.
“After a review of the estimated claim costs made in the filing, the Bureau determined that an increase of 1.2 percent is more appropriate,” said Superintendent of Insurance Alessandro Iuppa. “Although on face value the change in the requested increase is relatively small, the reduction is expected to save employers approximately $1.6 million on policies issued or renewed in 2006,” stated Iuppa. “The actual increase or decrease in a particular employer’s premium however, will vary from the average depending on the specific industry classification.”
Though the frequency of lost time claims has continued to decrease since 2000, the average cost per case for both wage loss and medical benefits has increased which has offset claims savings, Iuppa noted.
Once approved, NCCI advisory rates are available to insurers to reference when they file their workers’ compensation rates with the Bureau of Insurance. Company filed rates are subject to competitive market controls, but NCCI’s advisory rates can be disapproved if found to be excessive.
Source: Maine Bureau of Insurance
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