Office Issues Final Order Approving Workers' Compensation Rates for 2016
Thursday, November 12, 2015
TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) has approved an overall decrease of 4.7% in workers’ compensation insurance rates in Florida. Following the disapproval of its original rate filing request, the National Council on Compensation Insurance (NCCI) submitted additional information for the Office’s consideration on Friday, November 6, 2015 (Office Statement). NCCI requested that the Office re-evaluate three specific items pertaining to its annual rate filing: expense constant, indemnity trend, and the profit and contingency factor. The Final Order issued today re-confirms the Office’s denial of the requested modifications to the expense constant and indemnity trend. However, the Office granted an increase in the profit and contingency factor from the current approved 2.5% to 2.75%, which lowered the decrease in workers’ compensation rates from 5.1% to 4.7% overall. The new rates become effective January 1, 2016 for both new and renewal workers’ compensation rates.