Florida Insurance Commissioner Approves Seventh Consecutive Rate Decrease for Workers’ Compensation
– Florida Insurance Commissioner Kevin McCarty today issued a final order
approving the National Council on Compensation Insurance's (NCCI) amended rate filing for workers' compensation insurance rates that will become effective Jan. 1. The 6.8 percent rate decrease marks the seventh annual consecutive drop in workers' compensation rates since 2003, the year the Florida Legislature passed sweeping reforms of the workers’ compensation system.
The Office conducted a hearing on Oct. 6, 2009, and heard testimony from NCCI, industry experts and the public about NCCI’s initial Aug. 20 rate filing.
Commissioner McCarty issued an order
on Oct. 15 finding the 6.8 percent reduction in NCCI’s original rate filing justified, but he took exception to some of NCCI’s methodologies used in determining that rate; including its calculation of policyholder dividends, cost of capital, investment yields, minimum premiums and proposed roofing rate. That Order requested NCCI to modify its original filing and resubmit it; which it did on Oct. 19.
Today’s final order approves the NCCI’s amended rate filing in its entirety and notes all requested changes in Commissioner McCarty’s Oct. 15 order have been made. The NCCI’s amended rate filing for workers' compensation insurance rates will become effective Jan. 1.
With this rate change, the cumulative overall statewide average rate decrease since 2003 will be more than 63 percent.
The overall average rate impact at an industry group level will be as follows:
Industry Group 1/1/10 Filing Cumulative 10/1/03–1/1/10
Manufacturing -4.7% -60.0%
Contracting -10.8% -65.4%
Office and Clerical -6.2% -63.3%
Goods and Services -3.8% -62.2%
Miscellaneous -6.7% -62.1%
TOTAL -6.8% -63.2%