The New Hampshire Insurance Department (NHID) approved a rate proposal filed by the National Council on Compensation Insurance (NCCI) that will reduce voluntary loss costs by 8% on average.
“Over the past several years, the state has worked hard, in coordination with our state agencies, to pursue policies that promote job growth and lessen the burden on our small employers,” said Governor Chris Sununu in an NHID press release. “These efforts, such as lowering the payroll deduction for workers’ compensation, combined with a strong commitment to employee safety by our business community, have produced this good news for New Hampshire.”
Loss costs in the voluntary market have decreased in each of the last nine years and 50% cumulatively over this period. The loss cost is the portion of an employer’s insurance premium that pays claims costs for work-related injuries. The loss cost is ultimately used by insurers to set rates and premiums in the voluntary market.
All insurers writing voluntary workers’ compensation in New Hampshire are required to use the new loss costs and are permitted to make adjustments for their own company expenses.
“What we are experiencing here in New Hampshire is part of a national trend,” said Christian Citarella, Chief Property and Casualty Actuary for the NHID, in the release. “The data indicate that workplace safety continues to be a priority for New Hampshire businesses. Fewer people are getting hurt on the job. Workers who are injured are getting timely and effective treatment and are getting back to work quickly. Combine these with a continued downward trend in workers’ compensation medical expenses and the result is lower insurance rates for employers.”
The NCCI is a licensed rating and statistical organization that gathers data, analyzes industry trends and prepares workers’ compensation rate filings for New Hampshire and many other states. The new rates will apply to policies effective starting on January 1, 2022.
“Continued stability in the workers’ compensation market is fantastic news for the Granite State’s business owners and employees,” said NHID Commissioner Chris Nicolopoulos in the release. “There is a very strong market right now, and business owners can shop around with multiple carriers for the best deal on workers’ compensation insurance.”
Source: New Hampshire Insurance Department
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