New Jersey’s insurance regulator has approved a 3.9% reduction in workers’ compensation and employer liability rates starting January 1, 2024.
The approved statewide rate change is based on the latest financial and statistical data reported to the New Jersey Compensation Rating and Inspection Bureau and includes losses resulting from the COVID-19 pandemic.
According to NJCRIB, the data for the latest three complete policy years indicates a premium level adjustment factor of +4.6% due to experience and a trend factor of –9.8% to recognize changing exposures and losses.
The average rate decreases vary by classification including -3.8% for manufacturing, -3.4% for contracting, -4.5% for goods and serviced, and -3.0% for office/clerical.
The rate cut continues the downward trend of the past few years. Rates were cut an average 6.1% for 2023 and 5.3% for 2022.
Effective January 1, 2024, the maximum weekly benefit with respect to all types of injuries, except permanent partial disabilities, will be changed from $1,099 to $1,131. The minimum weekly benefit will be changed from $293 to $302. In cases involving permanent partial disabilities, the present maximum weekly benefits ranging from $292 to $1,099, varying on the basis of duration of disability, will be changed to $302 and $1,131, respectively. The minimum weekly benefit for permanent partial injuries will remain at $35.
In cases where rate increases are called for, no individual policyholder will receive an increase exceeding 15%, under the approval by the insurance department.
Topics Workers' Compensation Talent Pricing Trends New Jersey
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