Workers’ comp insurance costs could fall
Looks like there’s good news on the horizon when it comes to workers’ compensation insurance rates.
According to a press release from the Missouri Department of Insurance, the National Council on Compensation Insurance (NCCI) has proposed an overall decrease of 3.7 percent from its 2014 loss costs. Generally, insurers and self-insurers use loss costs to set premiums. This is good news in that last year at this time, NCCI foresaw an 11 percent rise in loss costs.
State insurance department director John M. Huff said the reduction in loss costs is largely due to a drop in overall medical claims costs. Last year showed a drop in the frequency of workers’ compensation claims.
“This is positive news for Missouri businesses,” said Director Huff in the press statement. “The workers’ compensation market continues to be competitive in Missouri with 319 companies actively writing business. The effects of lower workers’ compensation rates will contribute to continued economic growth in this state.”
According to the NCCI proposal, here are the proposed changes in loss costs by industry group:
Goods & services -4.3%
Office & clerical -7.2%
The department will recommend its own loss costs. Workers’ compensation claims are regulated by the Division of Workers’ Compensation in the Missouri Departmen tof Labor and Industrial Relations, and rates are reviewed by the Department of Insurance.
Associated Industries of Missouri was formed in 1919 to write the state’s first workers’ compensation law and was instrumental in passing and defending reforms to that law in 2005 that have helped keep Missouri workers’ compensation rates reasonable for Missouri employers.