Office Of Insurance Regulation Releases Report Analyzing Workers’ Compensation Market
TALLAHASSEE (12/29/2006) - Pursuant to Section 627.211(6), Florida Statutes, the Florida Office of Insurance Regulation (Office) today released its annual report to the Legislature evaluating the vitality of the workers' compensation insurance marketplace in Florida. The report contains an analysis of the availability and affordability of workers' compensation coverage. Additionally, the report fulfills the requirements of Section 627.096, Florida Statutes, which requires the Office to study statistical data to assist regulators with their review of rate filings.
In October, Commissioner Kevin McCarty announced workers' compensation rates will decrease 15.7% effective January 1, 2007. This constitutes the fourth consecutive year for rate decreases, giving Florida consumers a cumulative 40.6 percent decrease in rates since 2003.
The report stipulates the decrease in workers' compensation rates is due to the Florida Legislature's modifications to the law enacted by the 2003 and 2004 legislative reforms. These reforms addressed attorneys' fees, construction industry requirements, and medical fees. "Due to the foresight of the Florida Legislature, these reforms have revitalized the market and increased competition," remarked Commissioner McCarty. "The resulting rate reductions have made the State of Florida a more attractive business environment."
The report's analysis shows Florida's workers' compensation market is a very competitive market relative to the five other most populous states: New York, California, Texas, Illinois and Pennsylvania. However, the report does note some continuing problems of availability for some segments of the business community, most notably, small firms, new firms, and construction companies.
The report also documents a decrease in the number of policies written by the Florida Workers' Compensation Joint Underwriting Association (FWCJUA). The report concludes the decline in residual market policies is also an indication of a healthy marketplace.
to view a copy of the 2007 workers' compensation report.
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