Connecticut Approves 4.9% Workers’ Compensation Decrease for 2027

The Connecticut Insurance Department has approved decreases in workers’ compensation rates for employers starting January 1, 2027. The voluntary market loss costs will decrease -4.9% overall, while assigned risk plan rates will go down -5.8% overall.

The changes reflect the request filed by the industry’s rating organization, the National Council on Compensation Insurance (NCCI).

Insurance Commissioner Joshua Hershman approved the filing after a 30 day period of public comment. The department did not hold a public hearing concerning this filing but welcomed emailed comments. Hershman said the department staff determined that overall cost levels are decreasing and that the changes in the filing are appropriate.

The changes in voluntary market loss costs by industry group will be: Manufacturing -5.5%; Contracting -6.0%; Office & Clerical -3.6%, Goods & Services -4.4%, and Miscellaneous -4.9%.

The new rates will also allow for increases in maximum salaries that are to be used in rating certain insureds. The annual payroll for partners and sole proprietors will go up from $89,200 to $92,400. The maximum payroll for executive officers or members of limited liability companies will increase from $3,400 to $3,600 and the maximum payroll for an athlete on professional athletic teams will rise from $1,700 to $1,800.

The cost levels for this filing were based on Connecticut loss experience for policy years 2023 and 2024.

This will mark the thirteenth straight year of a decrease in workers’ compensation costs in the state. For 2026, the NCCI proposed and the department approved an average 3.8% decrease in loss costs, while the assigned risk rate was cut an average 0.4%. For 2025, there was an overall 6.1% reduction in loss costs in the voluntary market and a 6.2% overall reduction in the assigned risk market, as NCCI proposed.

Loss costs reflect actual or expected claim costs and related legal and settlement expenses. They serve as the baseline to which each insurance company adds its own costs for overhead, operations and profit to determine the final premium.

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