NCCI Proposes Decrease in Workers’ Comp Loss Costs in Georgia

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The National Council on Compensation Insurance (NCCI) recently delivered a workers’ compensation loss cost and assigned risk rate filing to the Georgia Department of Insurance.

Based upon its review of the most recently available data, NCCI has proposed in its Oct. 29 filing an overall average workers’ comp loss cost level change of -3.3 percent and an overall average assigned risk rate level change of 0.0 percent to become effective March 1, 2015. The loss cost filing components include the change in experience and trend (-3.2 percent) and the change in benefits (-0.1 percent).

NCCI also provided the following observations:

• The filing is based on premium and loss experience for policy years 2011 and 2012. Experience for policy year 2012 is more favorable than that for policy year 2011.

• Following several years of increases, Georgia’s lost-time claim frequency declined in the most recent policy year.

• Georgia’s indemnity and medical loss ratios have improved over the recent past, with the medical loss ratios exhibiting comparatively more year-to-year volatility over time.

If approved as filed, the overall average loss cost level changes by industry group would be as follows: -5.7 percent for manufacturing; -1.8 percent for contracting; -7.0 percent for office and clerical; -2.6 percent for goods and services; and -1.2 percent for miscellaneous.

The Georgia assigned risk rate filing proposes a 0.0 percent overall average change to the current assigned risk rate level in effect since March 1, 2014. Beginning with the proposed voluntary market loss cost level change, the assigned risk rate change includes a proposed increase to the current assigned risk loss cost multiplier.

Source: The National Council on Compensation Insurance

Topics Trends Profit Loss Workers' Compensation Georgia

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