NCCI Proposes Decrease for Workers’ Comp Loss Costs in Maryland

The National Council on Compensation Insurance (NCCI) recently delivered a workers’ compensation loss cost filing to the Maryland Insurance Administration.

NCCI stated in its July 28 filing that based on its review of the most recently available data, it is proposing an overall average workers’ compensation voluntary market loss cost level change of -5.3 percent to become effective Jan. 1, 2016.

Voluntary loss cost filing components include -5.5 percent for change in experience and +0.2 percent for change in benefits.

NCCI stated that primary drivers of the proposed changes include the following:

• Improved experience (policy year 2013 better than policy year 2011)
• Lower development contributed to improved experience
• No change in loss ratio trends
• Increase in indemnity benefits (due to increase in statewide average weekly wage)
• Increase in medical benefits (due to physician fee schedule change)

Source: The National Council on Compensation Insurance

Topics Trends Profit Loss Workers' Compensation