La. sees rate decreases in workers’ comp filings

Workers’ compensation insurance rates are decreasing in Louisiana, according to Commis-sioner of Insurance Jim Donelon. Donelon attributes the positive change to a significant drop in loss costs for insurers.

According to the Louisiana Department of Insurance workers’ comp carriers in Louisiana use the National Council on Compensa-tion Insurance (NCCI) annual loss cost filing report to help formulate their insurance rates. A recent NCCI lost cost filing showed Louisiana with the nation’s largest percentage drop in loss costs, at 15.8 percent. Several companies recently have filed for a rate decrease with the department, which said filings are still being received and expects the this trend will likely continue.

The following table shows the companies with a statewide market share of 0.1 percent or more requesting a rate decrease over the past month. The 27 companies shown are collectively requesting an average 15.9 percent decrease in rates. The total Louisiana workers’ compensation market is estimated at $1.03 billion. These 27 companies account for $230 million or approximately 22.4 percent of the market.