Maine Insurance Superintendent Eric Cioppa said the Bureau of Insurance has approved the National Council on Compensation Insurance’s request to decrease workers’ comp loss costs in the state by an average of 3.2 percent for policy year 2012.
Cioppa said the approved cut in loss costs should reduce premiums in the insured market by about $6.1 million per year. The effective date for the proposed rates is January 2012.
“This loss cost filing indicates that the frequency of claims is decreasing faster than any increase in medical and indemnity expenses for each claim,” Cioppa said. “This decrease can be attributed, in part, to the continuing focus on safety by Maine employers.”
Maine Governor Paul LePage added that the state’s business community can take pride in the progress that’s been made to enhance safety and reduce workers’ comp costs. “Everyone benefits — employees, employers and customers — from safe workplaces and lower premiums,” the governor said.
National Council on Compensation Insurance (NCCI) is the advisory rating organization for insurers that offer workers’ comp coverage in Maine. Loss costs are the portion of premium that cover benefits.
NCCI approved loss costs are available to insurers to reference when filing their workers’ comp rates with the Bureau of Insurance. Maine currently has a competitive market for workers’ comp insurance and each insurer sets its own rate level.
Insurers may modify the NCCI loss costs and must select their own expense and profit factor in setting rates. The 3.2 percent reduction is an average. While some businesses will experience an increase, most employers will realize a decrease.
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