The Connecticut Insurance Department has approved a filing with decreases of 14.1% to workers’ compensation pure premium lost costs, and an 8.2% reduction in assigned risk rates.
The decreases, effective January 1, 2022, pave the way for insurance companies to reduce the workers’ compensation premiums for individual businesses in Connecticut.
This is the eighth consecutive year of rate decreases in Connecticut.
Since 2019, Connecticut businesses have experienced savings of more than $140 million in workers’ compensation premiums, according to the state. The entire workers’ compensation book of business in the state is $800 million.
“This further decline in workers’ compensation insurance premiums is good news for businesses, enabling employers to invest more money back into their companies and employees, and providing a boost to our economy,” Governor Ned Lamont said. “It’s even better news for workers, because the decrease reflects the fact that workplaces are getting safer and safer.”
Insurance Commissioner Andrew N. Mais said the loss cost reduction reflects an ongoing decrease in the number of workplace injuries and claims filed. Over the past eight years, the cumulative impact has been more than $300 million in premiums reductions, Mais said.
Loss costs, or pure premium, reflect an insurer’s actual or expected costs including indemnity payments and claims adjustment costs, but do not include overhead costs or profit adjustments. With the approval of the filing of the National Council on Compensation Insurance, effective January 1, 2022, voluntary market insurers will now review their own loss cost experience and company expenses and submit individual company rate filings to the insurance department for approval.
NCCI said it excluded data from COVID-19 related claims for its analysis and recommendation because it does not think those claims are predictive of future loss experience.
In the voluntary market, which is the competitive market, loss costs will decrease by an average of 14.1%. Most Connecticut employers purchase workers’ compensation coverage in the voluntary market.
In the assigned risk market, which is the market for employers unable to obtain coverage in the voluntary market, rates will also decrease by an average of 8.2%.
The Connecticut Insurance Department issued a memorandum and order approving the filing of the NCCI) which compiles data in Connecticut and countrywide to propose loss costs/rate adjustments for the ensuing year.
Topics Workers' Compensation Pricing Trends Talent Connecticut
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