Florida Approves 6.6% Rate Decrease to Workers’ Comp Rates

Florida Insurance Commissioner David Altmaier has issued a final order approving the National Council on Compensation Insurance (NCCI)’s filing for a statewide overall decrease of 6.6% for Florida workers’ compensation insurance rates. This applies to both new and renewal workers’ compensation insurance policies effective in Florida as of Jan. 1, 2021.

Altmaier approved the NCCI amended rate filing, which met the stipulations of the rate filing order issued by Altmaier on Oct. 30, 2020.

Altmaier said then the original request for a 5.7% decrease needed to be amended to a larger decrease of 6.6% to be approved. NCCI was to file the amendment by Nov. 4, 2020.

Altmaier’s order disapproved the inclusion of large deductible coverage from two NCCI financial calls, saying that NCCI indicated in its testimony at a public hearing that the use of large deductible coverage data imposes a cost on carriers “but does not have a significant impact on the credibility or predictive value of the filing’s aggregate indication. NCCI agreed that this data should be eliminated from the filing’s aggregate indication.”

The order also noted that filing does not include claims from COVID-19, as potential impact of the coronavirus on the workers’ compensation system is in the beginning stages.

More information about the NCCI public hearing and rate filing is available on the OIR NCCI Public Rate Hearing webpage.

“This further reduction in workers’ compensation insurance rates for 2021 reflects the continued commitment to safety and innovation in Florida workplaces,” Altmaier said. “The decline in workers compensation claims, which is reflected in lower rates, is a positive indicator for Florida businesses.”

The decrease is the fifth for Florida since 2016.

Source: Florida Office of Insurance Regulation

Topics Florida Trends Workers' Compensation Pricing Trends