Florida Workers’ Comp Writers Seek 1% Rate Bump

Florida’s employers can look forward to little, if any, change in their 2014 workers’ compensation rates as the state’s industry-backed rating agency has filed for a statewide average one percent rate increase.

The industry’s National Council on Compensation Insurance filed for the increase, marking the fourth consecutive increase filed by the rating agency. In 2011, regulators signed off on an 8.9 percent increase that was followed by a 6.1 percent increase that took effect in January.

Even so, NCCI and regulators continued to tout the success of a rewrite of the state’s workers’ compensation law in 2003. Prior to those reforms, Florida consistently ranked among the highest states in rates.

Since those reforms 10 years ago, rates in Florida have fallen by 64.7 percent. Even if this year’s rate request is approved as filed, Florida employers’ rates will still be down 55.9 percent from their pre-2003 level.

That would peg the state’s average loss costs at $1.09 per $100 in payroll, which is consistent with other southeast states such as North Carolina, South Carolina, Georgia and Alabama.

NCCI said that this year’s filing reflects the continued stabilization of the state’s loss experience. Also, claims frequency was up in 2011, but not nearly to the degree that it had been between 2008 and 2010. In fact, NCCI said that most of the proposed one percent increase reflects the fact that medical costs are outpacing wage inflation and declines in expenses.

Looking at the five major industry classifications, rates changes would range from an average high of 3.5 percent in construction classes to a low of minus-3.2 percent across manufacturing.

Goods and services would see an average increase of 1.1 percent and miscellaneous classes, 0.9 percent. Office and clerical classes would see an increase of 0.3 percent.

Florida’s Office of Insurance Regulation said it anticipates holding a public hearing in early October. The new rates would take effect, January 1, 2014 if approved.