North Carolina Approves 17.2% Rate Decrease for Workers’ Comp
The North Carolina Rate Bureau’s 17.2 percent rate decrease filing for workers’ compensation insurance has been approved by North Carolina Insurance Commissioner Mike Causey, according to a statement from the North Carolina Department of Insurance.
“This rate decrease should serve as an economic boon to the state’s small businesses,” said Causey. “I am pleased to approve the North Carolina Rate Bureau’s request for lower rates because it will ultimately put more money in the pockets of business owners and our consumers.”
NCRB, which files requests on behalf of the state’s insurance industry to the N.C. Department of Insurance, submitted the rate decrease filing on Aug. 29. The new rates will become effective April 1, 2019.
The NCRB proposed an average 15.8 percent rate decrease to manufacturing industry groups, an average 6.5 percent decrease to contracting industry groups, and an average 19.3 percent decrease to both office and clerical and goods and services industries. The filing proposed an average 14.7 percent decrease to other, miscellaneous industry groups.
According to the NCRB, the filed decrease is the result of insurance carriers having and paying out fewer workers’ compensation claims. North Carolina workers’ comp rates have decreased steadily over the last few years – a 12.5 percent decrease proposed by NCRB was approved in 2017 and an 8.5 percent decrease was approved in 2016.
NCRB said for the federal classifications, the approved overall rate level decrease is 4.3 percent relative to the current overall rate level. Within each industry group, the change will vary from the average by classification depending upon the volume and character of the particular classification experience. The rates, rating values and miscellaneous values that have been approved are available on the NCRB website.
The N.C. Workers’ Compensation Act is administered by the North Carolina Industrial Commission, which is housed under the North Carolina Department of Insurance.