Illinois Workers’ Comp Premium Rate High but Improving

October 1, 2015

With a median rate index of 2.35 per $100 of payroll, Illinois has the seventh highest average workers’ comp premium rate of all U.S. states, according to the 2014 Oregon Workers’ Compensation Premium Ranking Study. The national median index rate is 1.85 per $100 of payroll.

The good news, however is that in 2010, Illinois had the third highest average premium rate.

In its annual report for FY 2014, dated June 16, 2015, the Illinois Workers’ Compensation Commission also shows the following:

  • Illinois is one of the top 10 wage states. Illinois wages are 6 percent higher than the U.S. average; the average Illinois annual wage is $52,590 and the U.S. average is $49,808.
  • Illinois has the most workers’ comp insurers of any U.S. The number of insurance companies writing workers’ comp policies in Illinois has grown by 13 percent since 2006.
  • Illinois insurers reported a 19 percent decrease in loss costs (benefit payments) from 2011-2015.
  • Employers in Illinois are required by law to protect their employees by providing benefits for workers who are injured on the job. Illinois employers may purchase workers’ compensation insurance policies or self-insure for coverage for injured workers.
  • Employers that are found to have knowingly and willfully failed to obtain insurance in Illinois may be fined up to $500 for every day of noncompliance by the IWCC, with a minimum fine of $10,000.
  • The IWCC collected $1.9 million in fines from 216 employers uninsured for workers’ comp in FY2014.
  • The average workers’ comp coverage rate for nonfederal workers in the United States is 97.1 percent. In Illinois, 99.8 percent of workers are covered. Workers’ comp coverage rates in nearby states are: Indiana — 99.5 percent; Iowa — 99.1 percent; Wisconsin — 97.1 percent; Michigan — 97.0 percent and Missouri — 95.4 percent
  • The injury rate for workers in Illinois is 3,201 per 100,000 workers. Countrywide, the average is 3,491 per 100,000 workers.
Illinois Top 25 Workers’ Comp Companies per Market Share 2014
Company % Market Share Premium Written ($000 omitted) % Change
2014 2013 2014 2013
Travelers Prop Cas Co of Amer 3.41 3.43 $93,866.9 $92,045.9 1.98
Zurich Amer Ins Co 3.27 4.09 89,948.1 109,937.1 -18.18
Technology Ins Co Inc 2.70 2.62 74,414.9 70,432.5 5.65
Country Mut Ins Co 2.34 2.21 64,312.3 59,401.1 8.27
Acuity A Mut Ins Co 2.29 2.35 62,946.4 63,214.1 -0.42
Pekin Ins Co 2.00 1.96 54,944.1 52,609.1 4.44
American Zurich Ins Co 1.96 1.52 53,968.8 40,948.1 4.44
Insurance Co of the West 1.93 1.84 53,155.6 49,327.1 7.76
Riverport Ins Co 1.62 1.48 44,658.3 39,711.9 12.46
Federal Ins Co 1.51 1.60 41,585.0 42,962.6 -3.21
Accident Fund Gen Ins Co 1.49 1.08 41,050.9 29,004.6 41.53
West Bend Mut Ins Co 1.42 1.27 39,225.6 34,211.6 14.66
Travelers Ind Co Of Amer 1.40 1.48 38,503.9 39,799.6 -3.26
Continental Ind Co 1.33 0.99 36,648.1 26,553.3 38.02
Liberty Mut Fire Ins Co 1.31 1.42 36,089.6 38,034.2 -5.11
Phoenix Ins Co 1.16 0.87 32,022.6 23,423.9 36.71
Carolina Cas Ins Co 1.14 1.03 31,329.3 27,558.6 13.68
Accident Fund Ins Co of Amer 1.12 1.06 30,857.6 28,497.9 8.28
Lm Ins Corp 1.11 1.21 30,693.3 32,482.2 -5.51
Cincinnati Cas Co 1.10 1.44 30,346.4 38,683.5 -21.55
Hartford Ins Co of Il 1.09 0.68 30,076.2 18,201.1 65.24
Liberty Ins Corp 1.07 1.41 29,496.5 37,890.9 -22.15
Twin City Fire Ins Co 1.02 2.02 28,169.4 54,367.3 -48.19
Owners Ins Co 1.02 1.02 27,957.0 27,323.4 2.32
New Hampshire Ins Co 0.99 1.35 27,228.0 36,215.5 -24.82
Total ($000 included) 40.80 41.44 $1,123,494,880 $1,112,837,336 0.96

Source: Illinois Department of Insurance

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