Workers’ Comp Rates to Drop Again in Louisiana
Workers’ compensation insurance rates will continue to decrease in Louisiana with a new rate reduction beginning in May, the insurance department reported.
Louisiana Insurance Commissioner Jim Donelon approved a loss cost filing by the National Council on Compensation Insurance (NCCI) that lowers workers’ comp rates by 4.1%, effective May 1, 2021.
With the current decrease, rates will have declined in seven of the last eight years, according to the Louisiana Department of Insurance. Over the last five years, rates have cumulatively dropped by 25%. Last year, NCCI’s approved annual filing reduced rates by 8.4%, effective May 1, 2020.
Founded in 1923, NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations to its 35 member states and the District of Columbia. NCCI members can adopt the approved rate or they can include NCCI’s analysis with their own loss experience to complete their own rate filing with LDI.
The total Louisiana workers’ comp insurance market is estimated to be just shy of $900 million in total premium and now has 247 companies writing the line of business. By comparison, there were 197 companies offering workers’ comp in Louisiana in 2007.
Louisiana Workers’ Compensation Corp. (LWCC) retains the highest share of the market in the state with more than 25% in 2019.