Louisiana Workers’ Compensation Rates on Downswing

Louisiana Commissioner of Insurance Jim Donelon says rates for workers’ compensation insurance continue to decrease in his state, based on a recent report from the National Council on Compensation Insurance (NCCI) that analyzes workers compensation rates in 35 states.

Most workers’ comp carriers in Louisiana use the NCCI annual loss cost filing report to help formulate their insurance rates. A recent NCCI loss cost filing showed Louisiana with a 17.4 percent drop in loss costs, which was approved by the Department of Insurance.

Companies will begin adopting the new rates by filing for a rate decrease with the Department of Insurance around late March through September 2009, and begin using the lower rates within approximately 45 days after approval of the adoption.

This reduction follows an 8.6 percent reduction in workers’ comp rates last year and a 15.8 percent reduction in workers’ comp rates in 2007, the highest reduction of the 35 states NCCI analyzes.

“This is positive news for our state’s business community and will help greatly in our economic development efforts as Louisiana continues to recover from the hurricanes of 2005 and 2008,” Commissioner Donelon said in announcing the drop in rates. “Our market continues to show strong signs of improvement, particularly in the area of improved worker safety. Improved worker safety leads to fewer workplace injuries across most employment classes, a trend we have seen over the past few years and the leading cause of these recent rate reductions.”

The total Louisiana workers’ compensation market is estimated to be $1 billion per year in premium.

Source: Louisiana Department of Insurance, www.ldi.state.la.us

Topics Workers' Compensation Talent Louisiana