Workers’ compensation rates in Tennessee are expected to decrease next year after a 9.2% overall loss cost decrease was approved.
Tennessee Department of Commerce & Insurance Commissioner Carter Lawrence approved an order Nov. 14, 2020 for the decrease, beginning March 1, 2021 on new and renewal policies. It marks the eighth consecutive year of declines for Tennessee businesses, the department said in a statement.
Since Tennessee’s workers’ compensation system reforms began in 2014, loss cost reductions of over 56 percent have been approved. The reduced loss costs are also impacted by Tennessee employers seeing fewer significant workplace injuries.
Last year’s approved rate reduction was about 7% while 2018’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 of workers’ compensation insurance premiums is an important factor in creating an atmosphere in Tennessee where businesses can grow, employees can prosper and our state can continue to attract companies and high-paying jobs,” said Tennessee Governor Bill Lee.
“During a year when Tennessee employers and employees have faced numerous challenges because of the COVID-19 pandemic, these reductions mean Tennessee employers may now have more money to invest back into their businesses and employees,” said Lawrence.
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 Insurance
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