Workers’ compensation rates in Tennessee will go down again next year, marking the seventh consecutive year of decreases, according to the Tennessee Department of Commerce and Insurance.
Commissioner Hodgen Mainda approved a 7.1 percent overall loss cost decrease for 2020 last month. The reduction will become effective March 1, 2020.
“These reductions are great news for Tennessee employers, employees, and our rural communities,” Mainda said. “The reductions mean employers may now have more money to invest into their businesses and employees, which will, in turn, benefit local communities and continue to enhance the Volunteer State’s ability to recruit companies and talent.”
TDCI said the rate decrease continues “a trend of savings for Tennessee employers and workers,” since reforms of Tennessee’s workers’ compensation system began in 2014. Loss costs reductions of over 52 percent have been approved during the period since the reforms. TDCI said the reduced loss costs are also impacted by Tennessee employers seeing fewer significant workplace injuries.
Last year’s approved rate reduction was significantly higher at 19%. Previous reductions of 12.6 percent and 12.8 percent were approved with March 1, 2018, and March 1, 2017, effective dates, respectively.
“The continued decline in workers’ compensation premiums highlights Tennessee’s focus on creating an environment where businesses can grow, employees can prosper, and our state can continue to attract companies and high-paying jobs,” said Tennessee Governor Bill Lee.
Insurance carriers combine the National Council on Compensation Insurance loss cost filings with company experience and expenses to develop full insurance rates.
Source: Tennessee Department of Commerce & Insurance
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