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Press Release

Florida Insurance Commissioner Issues Order with Respect to NCCI's Workers' Compensation Rate Filing
Friday, October 15, 2010
Contact Info:

Jack McDermott
Brittany Benner
850 413-2515
850 413-2515

TALLAHASSEE, Fla.  - Florida Insurance Commissioner Kevin McCarty today announced that he has advised the National Council on Compensation Insurance (NCCI) that he would approve a rate filing to increase Florida's workers' compensation insurance rates by 7.8 percent to be effective January 1, 2011 for new and renewal business. Commissioner McCarty's action is technically a denial of NCCI’s recent rate filing that sought an 8.3 percent increase.
 
"The rate increase that that has been justified would still give Florida the lowest rates in the southeast, and likely keep us in the top 10 states nationally for most affordable workers' compensation insurance," said Commissioner McCarty. "The NCCI's prior seven annual filings represent the largest consecutive cumulative decrease in rates in our state’s history."
 
If NCCI accepts the Commissioner's findings and makes a re-filing, this would give Florida a cumulative decrease of 61.9 percent since 2003, and keep Florida's workers' compensation rates below the state's average rates in 2009.  Prior to the 2003 legislative reforms, Florida consistently ranked No. 1 or No. 2 in the country for the highest workers' compensation rates; however, post-reform Florida rates have become some of the most competitive in the nation.
 
The Office conducted a public hearing on this rate issue on October 5, 2010 in the Senator Jim King Committee Room in the Senate Office building.  NCCI presented its analysis; other industry experts and the Florida's Consumer Advocate also provided testimony. The Office’s analysis used a different medical trend factor than the one used in the NCCI filing which led to a marginally different outcome. The Office prepared a graph to illustrate the rate changes from 2003 to present. The last data point is what the Office would approve.
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Contact Info:

Jack McDermott
Brittany Benner
850 413-2515
850 413-2515

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm.

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