Workers’ compensation insurance rates will continue to decrease in Louisiana with a new rate reduction beginning in May, the insurance department reported.
Louisiana Insurance Commissioner Jim Donelon has approved a loss cost filing by the National Council on Compensation Insurance (NCCI) that reduces workers’ compensation rates by 4.1%, effective May 1, 2021.
With the current decrease, rates will have declined in seven of the last eight years, according to the Louisiana Department of Insurance. Over the last five years, rates have cumulatively dropped by 25%.
Last year, NCCI’s approved annual filing reduced rates by 8.4%, effective May 1, 2020.
Founded in 1923, NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations to its 35 member states and the District of Columbia. NCCI members can adopt the approved rate or they can include NCCI’s analysis with their own loss experience to complete their own rate filing with LDI.
The total Louisiana workers’ compensation insurance market is estimated to be just shy of $900 million in total premium and now has 247 companies writing workers’ compensation insurance. By comparison, there were 197 companies offering workers’ comp in Louisiana in 2007.
Louisiana Workers’ Compensation Corp. (LWCC) retains the highest share of the market in the state with more than 25% as of 2019. LWCC is a single state, single line mutual insurance company that was originally chartered in 1992 to provide competitive and residual market coverage, according to the LDI.
Top 10 workers’ comp insurers in Louisiana by market share in 2019:
| Company | Domicile | Direct Premium Written | Market Share |
| Louisiana Workers’ Compensation Corporation | LA | $ 213,703,146 | 25.94% |
| LUBA Casualty Insurance Company | LA | $ 57,838,288 | 7.02% |
| Zurich American Insurance Company | NY | $ 33,385,574 | 4.05% |
| Bridgefield Casualty Insurance Company | FL | $ 28,797,087 | 3.50% |
| Stonetrust Commercial Insurance Company | NE | $ 21,355,734 | 2.59% |
| Ace American Insurance Company | PA | $ 18,721,844 | 2.27% |
| Starr Indemnity & Liability Company | TX | $ 17,396,674 | 2.11% |
| New Hampshire Insurance Company | IL | $ 16,311,992 | 1.98% |
| Retailers Casualty Insurance Company | LA | $ 15,332,437 | 1.86% |
| LCTA Casualty Insurance Company | LA | $ 14,833,764 | 1.80% |
Source: LDI
Topics Workers' Compensation Louisiana
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