BUSINESSES COULD GET BREAK ON WORKERS ’ COMP INSURANCE
By Jim Saunders TALLAHASSEE --- For Florida businesses
struggling during the COVID-19 pandemic , here ’ s a bit of good news : Workers ’ compensation insurance costs could go down in 2021 .
State insurance regulators have received a rate filing that would reduce premiums next year in the workers ’ compensation system by an average of 5.7 percent , which would be the fourth straight year of premium decreases , according to information released Tuesday .
The National Council on Compensation Insurance , which makes annual rate filings for the industry , pointed to “ unprecedented results ” in the workers ’ compensation insurance system nationally . Florida ’ s average rates dropped 7.5 percent this year , after reductions of 13.8 percent in 2019 and 9.5 percent in 2018 .
“ For decades , with few annual exceptions , frequency ( of claims ) has continued on a clear downward path driven by technology , safer workplaces , improved risk management , and a long-term shift from manufacturing to service sectors ,” the organization , known as NCCI , said in a summary of the filing . “ NCCI has no expectation that this trend will change course . For the last several years , severity trends ( of claims ) have remained fairly moderate , tracking very closely with wage inflation . For these reasons , NCCI ’ s analysis has indicated decreases across most of its jurisdictions in recent years .”
The state Office of Insurance
Regulation will review the filing before issuing an order setting the rates , which would take effect Jan . 1 . In setting the 2020 rates , for example , the office approved a 7.5 percent decrease after NCCI initially proposed a 5.4 percent average reduction .
“ As always , OIR will review the filing to ensure the proposed changes are not excessive , inadequate or unfairly discriminatory and evaluate its potential effects on the insurance marketplace and employers , who are required by law to carry this insurance on their employees ,” the Office of Insurance Regulation said Tuesday as it released information about the filing .
In its summary , NCCI said the filing does not take into account potential effects of the COVID-19 pandemic on the workers ’
22 DITCHMEN • SEPTEMBER 2020