Fla. Report: Workers’ Comp Rates Reduced 5 Times in 5 Years

On New Year’s Eve, the Florida Office of Insurance Regulation released its annual report on the state of the market for workers’ compensation insurance to the Florida Legislature.

The report analyzes the availability and affordability of coverage for workers’ compensation insurance in Florida for calendar year 2006 and concludes that Florida is the largest market dominated by private market insurers (as compared to state sponsored residual market entities such as those in New York and California).

In addition, the OIR approved an overall rate reduction of 18.4 percent, effective Jan. 1, 2008, marking the fifth consecutive year of workers’ compensation rate decreases. The newest rate reductions will give Florida businesses a cumulative decrease of 51.4 percent since legislative reforms were enacted in 2003.

The report highlighted other trends in Florida’s workers’ compensation market: Overall workers’ compensation claim frequency is on the decline, which continues to offset any increases in claim severity costs; companies are performing well in their underwriting, and the Florida Workers’ Compensation Joint Underwriting Association, the insurer of last resort, had only $37.3 million in written premium in 2006 – less than 1 percent of the Florida market. Through November 2007, written premium had declined further to $19.2 million.

Florida also welcomed five new workers’ compensation writers in 2006; the five companies are domiciled in Florida, Delaware, Iowa, New York and Wisconsin.

A copy of the 2007 Annual Workers’ Compensation Report is available for review at www.floir.com.

Source: Florida Office of Insurance Regulation

Topics Florida Trends Workers' Compensation Pricing Trends