NCCI Proposes Decrease for Workers’ Comp Loss Costs in Vermont

December 5, 2014

The National Council on Compensation Insurance (NCCI) recently delivered a workers’ compensation loss cost filing to the Vermont Department of Financial Regulation.

Based upon its review of the most recently available data, NCCI has proposed in its Nov. 17 filing an overall average workers’ comp loss cost level change of -5.6 percent and an average assigned risk rate level change of -5.4 percent to become effective April 1, 2015 .

Components of the overall voluntary loss cost change include -5.7 percent for change in experience trend and benefits, and +0.1 percent for loss adjustment expenses. And components for the overall assigned risk rate change also include +0.2 percent for change in assigned risk loss cost multiplier.

Primary drivers of the proposed loss cost level change include the following:

• The latest financial data experience period shows notable improvement when compared with the experience period underlying the previous filing.

• The frequency of lost-time claims continues to show a slight decreasing trend.

• The indemnity and medical loss ratios decreased for policy year 2012, driven in part by a decrease in the frequency of lost-time claims.

Average voluntary loss cost level change proposed for each industry group are: -9.4 percent for manufacturing; -7.4 percent for office and clerical; -5.0 percent for goods and services; -5.1 percent for contracting; and -2.5 percent for miscellaneous.

Source: The National Council on Compensation Insurance

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