The National Council on Compensation Insurance (NCCI) on Sept. 24 delivered a workers’ compensation loss cost filing to the Connecticut Insurance Department.
NCCI said that based upon its review of the most recently available data, it has proposed an overall average workers’ comp loss cost level change of -3.9 percent and assigned risk rate change of -6.3 percent to become effective Jan. 1, 2016.
The proposed decrease, if approved, would help lower Connecticut’s overall workers’ comp rates for a second year in a row. Last November, Connecticut regulators approved NCCI’s filing for a -0.6 percent change for overall average loss costs and a -0.5 percent change in the assigned risk rates, which went into effect Jan. 1, 2015.
The proposed -3.9 percent change in loss costs include the following components: a -4.1 percent change in experience and trend; a +0.3 percent change in benefits; and a -0.1 percent change in loss-based expenses. The proposed -6.3 change in assigned risk rates/premium also includes a -2.5 percent change in assigned risk multiplier.
NCCI provided the following key observations in its loss cost filing:
- Claim frequency continues its downward trend.
- Loss experience improved in the latest policy year.
- Premium volume continues to rise.
NCCI said that in Connecticut, overall loss costs have decreased 40 percent since the 1993 reforms. NCCI also said Residual Market Plan 2014 premium market share is 6.6 percent, which is below the average of 6.8 percent for NCCI plan administered states.
The average voluntary loss cost level change proposed for each industry group is as follows: -3.5 percent for manufacturing; -6.0 percent for contracting; -6.3 percent for office and clerical; -3.0 percent for goods and services; and -1.4 percent for miscellaneous.
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