Workers’ Comp Rates Decrease by 13.8 Percent
Automation and Employers’ Efforts to Create Safer Workplaces Produce Short-Term Rate Reduction, but Increased Attorney Fees Poised to Have Greater Impact on Future Rates
On Friday, November 9, 2018, the Office of Insurance Regulation (OIR) approved an average 13.8 percent decrease in workers’ comp rates to take effect January 1, 2019 for new and renewal policies. This is based on the National Council on Compensation Insurance’s (NCCI) filing for a 13.4 percent decrease to OIR at the end of August, 2018. When making its filing, NCCI pointed to improved loss experience as the reason for the decrease. More information and an analysis of NCCI’s August filing can be found here.
In a statement, Florida’s Chief Financial Officer Jimmy Patronis said:
“A workers’ compensation insurance decrease of 13.8 percent amounts to almost a half billion dollars in savings for Florida’s business community who support local economies, employ our neighbors, and give back to our communities. We must continue to do all we can to support and fuel Florida businesses, the backbone of our economy. While today’s news is good news, we must keep a close watch on Florida’s workers’ compensation insurance market so that we don’t go back to the time of skyrocketing rates.”
The Florida Chamber will continue to advise businesses on the impact of rising attorney fees and other cost drivers to the system. Friday’s rate decrease is good news for Florida job creators, but employers should be prepared for potential rate increases on the horizon as attorney fees continue to exert pressure on the workers’ comp system. As more time passes following the Castellanos decision in April 2016, these increased costs will be included in future experience rate filings.
Does Florida’s Workers’ Comp System Work For You?
Join us in advance of the 2019 Legislative Session to discuss workers’ comp and other issues important to Florida’s job creators by registering for the 2019 Florida Chamber of Commerce Legislative Fly-In on February 19-21, 2019.
Florida CFO Jimmy Patronis: AOB Fraud is a ‘Category 5 Hurricane’
Calling it a “potential problem of epidemic proportion,” Florida Chief Financial Officer Jimmy Patronis warns that fraud resulting from homeowners and auto glass insurance Assignment of Benefits will “affect every single policy holder in the state.” On this episode of the Florida Chamber’s Bottom Line, newly appointed CFO Patronis explains why AOB fraud not only hurts consumers – it threatening Florida’s financial bottom line.
Did You Know:
There were more than 28,000 AOB cases in 2016 – up from 405 a decade ago. If left unchecked, Citizens Property Insurance estimates that average premiums for a $150,000 home in Dade County will jump from $2,926 this year to $3,219 in 2018, and $4,712 by 2022.
Help Stomp Out AOB Fraud:
Help protect consumers by visiting FightFraud.Today and signing a petition encouraging lawmakers to pass meaningful AOB fraud reforms. Make plans now to attend the Florida Chamber’s Insurance Summit on November 2-3 in Orlando.