Maine Gov. Paul R. LePage and Insurance Superintendent Eric Cioppa announced Thursday that the Bureau of Insurance has approved the National Council on Compensation Insurance Inc.’s (NCCI) 2014 loss cost for Maine, filed earlier this month, which proposed a premium decrease of 7.7 percent.
The new NCCI rates go into effect for new and renewing policies as of April 1, 2014.
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.
“This decrease is expected to save Maine businesses and consumers more than $15 million, and result in a cumulative decrease of 52.7 percent since the 1992 workers’ compensation reform,” Gov. LePage said. “Maine employers and employees should take credit for the improvement in the workers’ compensation system. There has been a concerted effort to improve safety in the workplace, return injured workers to employment as soon as possible and control medical costs.”
Superintendent Cioppa explained that loss costs are based on previous and projected losses and benefit payments. “This significant decrease in loss cost, based on the most recent analysis by NCCI, reflects continued emphasis on safety among Maine employers and employees and will result in lower Workers’ Compensation premiums across all industries.”
NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage in Maine. NCCI-approved loss costs are available to insurers to reference when filing their workers’ compensation rates with the Bureau of Insurance.
Source: Maine’s Bureau of Insurance
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