The National Council on Compensation Insurance (NCCI ) recently delivered a workers’ compensation loss cost filing to the New Hampshire Insurance Department.
NCCI said in its July 31 filing that based upon its review of the most recently available data, NCCI has proposed an overall average workers’ comp loss cost level change of -5.9 percent and average assigned risk rate level change of -5.5 percent to become effective Jan. 1, 2016.
The -5.9 percent overall voluntary loss cost change proposal includes following components: -6.6 percent change in experience trend; +0.1 percent change in benefits; and +0.6 percent for loss-based expenses. The -5.5 percent overall assigned risk rate change proposal includes +0.4 percent change in assigned risk loss cost multiplier.
NCCI provided the following key observations in its loss cost filing:
- Experience improved in the latest evaluated period;
- Indemnity loss ratios are continuing to show decreasing trends, in part driven by the long-term decline in frequency of lost-time claims;
- Medical costs remain an important cost driver in New Hampshire, making up 73 percent of total benefit costs in the state; and
- The assigned risk market share has increased for the fifth year in a row.
The average voluntary loss cost level change proposed for each industry group is as follows: -6.5 percent for manufacturing; -8.3 percent for office and clerical, -4.5 percent for goods and services; -7.1 percent for contracting; and -5.5 percent for miscellaneous.
NCCI announced it will be holding the annual New Hampshire State Advisory Forum on Sep. 10, 2015 at the Radisson Hotel in Manchester, New Hampshire.
Was this article valuable?
Here are more articles you may enjoy.