The rates for workers’ compensation insurance are set by the Florida Office of Insurance Regulation every year. In setting this rate, the office seeks the advice of the National Council on Compensation Insurance (NCCI) as well as other entities. And the Florida workers’ compensation rates continue to decline.
This year, the NCCI is proposing a decrease of 5.4% in the comp insurance premiums. If the recommendation is approved by the regulators, this will be the third consecutive year of declining rates. The new rates will be effective from January 1, 2020.
One of the key reasons behind the proposed decrease is that there has been a major improvement in the workers’ compensation area. Since 2016, workers have steadily seen an improvement in the loss experience when they suffer a work-related injury or illness. This is largely a result of two notable Florida Supreme Court decisions taken back in 2016.
In both cases, the Supreme Court ruled in favor of the workers, taking away certain cost-reduction components of the comp insurance landscape. This prompted a sharp rise of 14.5% in the workers’ compensation rates. The rise immediately affected the employers and insurance industry across the state.
One of the most notable effects of this rise in rates was that the loss experience became more favorable. Employers seeking to avoid paying the high-rate insurance now make a harder effort of avoiding any work-related injuries or illnesses. This is largely the reason why workers’ compensation rates have been declining in the state for the past two years. In 2018, there was a 13.8% dip in the compensation rate. Now as we head towards 2020, a third consecutive decline is very likely on the horizon as per NCCI recommendation.
Regulators and NCCI alike believe that the workers’ compensation rates will continue to drop in the foreseeable future.
If you have experienced low workers’ compensation, contact us today help!