Monday, June 17, 2024

Donelon: Workers’ comp. rates down by more than 12% in 2023

by BIZ Magazine

Insurance Commissioner Jim Donelon has approved the annual loss cost filing of the National Council on Compensation Insurance (NCCI) for a -12.2% reduction in workers’ compensation rates. The decrease, which takes effect May 1, 2023, continues the downward trend experienced in nine of the last 10 years.

Workers’ compensation rates have dipped dramatically over the past two decades, with a combined decrease of -35% over the past five years, -47% over the past 10 and -63% over the past 20 years.

“Workers’ compensation rates have been a great success story in our market,” said Commissioner Donelon. “We’ve seen a strong downward trajectory in rates over the past two decades, including this year’s double-digit decrease. Our workers’ compensation market is thriving, and that’s great news for Louisiana employers.”

The total Louisiana workers’ compensation insurance market in 2022 is estimated to have about $850 million in written premium. Louisiana has a record 251 companies writing workers’ compensation insurance in our state, creating a very competitive market that has contributed significantly to the decreasing premiums described above.

Founded in 1923, the NCCI aims to build a strong workers’ compensation system. In support of this mission, NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations to its 35 member states and the District of Columbia. NCCI members can adopt the approved rate or include NCCI’s analysis with their own loss experience to complete their own rate filing with the Louisiana Department of Insurance.

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