Florida Insurance Commissioner David Altmaier has issued a final order granting approval to the National Council on Compensation Insurance (NCCI) for a statewide overall rate level decrease of 9.5 percent and premium level decrease of 9.8 percent. This applies to both new and renewal workers’ compensation insurance policies effective in Florida as of Jan. 1, 2018.
“I am pleased that today’s approval of NCCI’s rate filing will translate into a decrease in workers’ compensation rates for many Florida employers,” stated Commissioner Altmaier. “The Office will continue to monitor the marketplace and support reforms that provide additional cost savings for Florida’s businesses.”
The rate decrease is especially welcome after last year’s increase of 14.5 percent. Businesses were expecting additional rate increases in response to two 2016 Florida Supreme Court decisions – Castellanos v. Next Door Company and Westphal v. City of St. Petersburg – that led to the double digit increase this year.
NCCI said declining loss ratios, with a significant reduction in the lost-time claim frequency between 2001 and 2015, helped contribute to the rate decrease.
Still, workers’ comp experts say the impact of these decisions has not yet been felt by insurers, and workers’ comp reforms are needed.
“I’m pleased to see the cost of business going down, and as the Legislature looks at our workers’ compensation system, I will be working with them on proposals to lock in these lowering rates,” said Florida’s Chief Financial Officer Jimmy Patronis.
NCCI received this approval after submitting an amended rate filing to the Office on Nov. 7, 2017, which met the stipulations of an order issued by Altmaier on Oct. 31, 2017.
For more information about the NCCI public hearing and rate filing, visit OIR’s “NCCI Public Rate Hearing” webpage.