On May 1, 2018, the Florida Office of Insurance Regulation (OIR) issued a Final Order approving a rate level decrease of 1.8% for Florida workers’ compensation rates effective June 1, 2018. The 1.8% decrease was filed by the National Council on Compensation Insurance (NCCI) in a law-only filing resulting from the effects of the Federal Tax Cuts and Jobs Act.
As reported in a recent article in Insurance Journal, the decrease is the second approved by OIR for workers’ compensation rates in just six months. In November, NCCI’s filing for an overall rate decrease of 9.5 percent and premium level decrease was approved with the new rates taking effect Jan. 1, 2018. The rate decrease was especially welcome after two 2016 Florida Supreme Court decisions led to an increase of 14.5 percent for 2017.
NCCI said at the time declining loss ratios, with a significant reduction in the lost-time claim frequency between 2001 and 2015, helped contribute to the 2018 rate decrease.
Florida Chief Financial Officer Jimmy Patronis praised the most recent rate reduction, saying reducing insurance costs and financial burdens helps the business community.
“Businesses in Florida support our local communities, create jobs, and help our state’s economy. This rate reduction is a much needed insurance cost savings for Florida businesses,” Patronis said.
Read more here.