New Hampshire employers could pay less for their workers’ compensation insurance next year because of a filing that lowers the rates and loss cost factors insurers use to develop prices. This move would mark the sixth year in a row that New Hampshire workers’ compensation rates have decreased, according to a press release issued by the New Hampshire Insurance Department.
“A decrease in workers’ compensation rates means a decrease in costs to New Hampshire businesses.” said Insurance Department Commissioner Roger Sevigny in the release. “These considerable savings could be used to bring more workers, higher salaries and expanded operations to New Hampshire.”
The National Council on Compensation Insurance (NCCI) filed a rate proposal in August with the New Hampshire Insurance Department to reduce voluntary loss costs by 13.3%. The NCCI is a licensed rating and statistical organization that gathers data, analyzes industry trends, and prepares workers’ compensation rate filings for New Hampshire and many other states.
The loss cost is the portion of an employer’s insurance premium that pays claims costs for work-related injuries. It is ultimately used by insurers to set rates and premiums in the voluntary market. All insurers writing voluntary workers’ compensation in New Hampshire are required to use the new loss costs, along with a loading to cover company expenses.
The NCCI has filed a decrease of 10.3% for the assigned risk, or “residual,” market. The residual market ensures access to workers’ compensation for companies that are not able to buy coverage on the open market. About 9% of workers’ compensation insurance is obtained this way, according to the press release.
The New Hampshire Insurance Department has scheduled a public rate hearing for 10 a.m. September 21 to give NCCI an opportunity to discuss the filing and interested parties and other stakeholders the ability to provide testimony or comments. The hearing will be held in the Insurance Department’s Conference Room 274.
After the hearing and a short public comment period, Commissioner Sevigny will issue a decision on the filing, and the new rates will apply to policies effective January 1, 2018.
“The decrease in workers’ compensation rates is great news for job creators and seekers all across the Granite State,” said Governor Chris Sununu in the release. “This will increase New Hampshire’s advantage with regards to attracting, retaining and growing jobs.”
The New Hampshire Insurance Department’s mission is to promote and protect the public good by ensuring the existence of a safe and competitive insurance marketplace through the development and enforcement of the insurance laws of the State of New Hampshire.
Source: New Hampshire Insurance Department
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