New Mexico Sees Lower Costs Worker’s Comp Insurance

New Mexico insurance regulators are reducing a key component in rates for workers’ compensation coverage that should help employers spend less, starting next year.

The Superintendent of Insurance Office announced a 5.5% reduction in “loss costs” for insurance policies that are renewed or issued on or after Jan. 1, 2022.

Insurance regulators said that compensation claims are being filed less frequently than in the past, reflecting a commitment to safety.

State Insurance Superintendent Russell Toal said businesses can expect some financial relief on insurance costs amid challenges related to the COVID-19 pandemic. Detailed rates for worker’s compensation policies are set by carriers and will vary by sector.

“Lower rates will help a large number of employers save money, which they can use to reinvest in their businesses,” Toal said in a statement.