jump to main menu jump to subject menu jump to content jump to footer
Press Release print image

Press Release

Commissioner McCarty Announces Decision on Workers’ Compensation Rates
Wednesday, November 5, 2014
Contact Info:
Harvey Bennett/Amy Bogner
(850) 413-2515
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today issued an Order notifying the National Council on Compensation Insurance (NCCI) that its proposed 3.3% overall decrease in workers’ compensation rates in Florida as filed has been disapproved. NCCI, which files on behalf of approximately 250 workers’ compensation insurers with Florida policyholders, can re-file an overall rate reduction of 5.2% instead by next Tuesday and receive final approval.
 
After a careful review and analysis by the Office, the filing reflected an increase in the underwriting profit and contingency provision from its current approved 2.5% to 4.5% that was deemed excessive and unsupported.
 
“Just last year, NCCI requested and was approved for a 2.5% profit and contingency provision and the record does not reflect any significant change in the economy in the past year that would justify a near doubling of the underwriting profit,” said Commissioner McCarty.  “Florida’s Workers’ Compensation market is functioning very well, taking into account current economic conditions, and we want to ensure it remains doing so.”
 
The required re-filing by the Office is to include a negative 2% annual trend for indemnity costs and a positive 0.5% annual trend for medical costs.  The new rates would be effective January 1, 2015 for new and renewal policies. For more information about the 2015 NCCI annual rate filing, visit the Office’s “Past Public Rate Hearings By Date” website page.
Who:
What:
When:
Where:
Contact Info:
Harvey Bennett/Amy Bogner
(850) 413-2515
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation 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 and Facebook
###