Fla. Approves Workers’ Comp Rate Decrease

Florida insurance regulators approved the National Council on Compensation Insurance’s amended rate filing for workers’ compensation insurance rates.

On Oct. 22, Insurance Commissioner Kevin McCarty ordered NCCI to make an amended filing to reduce the rates of workers’ compensation insurance in Florida by 18.4 percent, a further reduction from the originally proposed 16.5 percent decrease. The new rate will become effective Jan. 1, 2008.

The final, 18.4 percent reduction is estimated to produce a savings of over $700 million for Florida employers, according to McCarty. McCarty’s order to amend the filing was based on disagreements with the methodology NCCI used to calculate the profit factors and trend factors. Trend factors incorporate changes in wages, paid losses and claim frequency.

Source: Florida Office of Insurance Regulation