New Jersey Workers’ Comp Insurers Seek 6.9% Rate Hike

The New Jersey Compensation Rating & Inspection Bureau has filed a request with regulators to increase workers’ compensation rates by 6.9 percent effective 2012.

“It will be reviewed by the Department of Banking and Insurance. A 6.9 percent increase is proposed, effective January 1, 2012. It was filed last Tuesday, Oct. 4,” Bureau’s executive director Frederick Huber told Insurance Journal.

Commenting on the state’s workers comp conditions, Huber said that after a long period of frequency going down, it’s leveled out somewhat. Also, medical costs continue to rise and indemnity costs are rising slightly, this in connection with a decreased level of premium base due to a slowdown in the economy in New Jersey.

He also noted the rising workers comp benefits that will become effective beginning next year. Under the change, the minimum workers comp benefit amount per week will go up by $5, from $211 to to $216. The maximum amount per week will go up by $18, from $792 to $810.

Topics Carriers Workers' Compensation Pricing Trends New Jersey