The Florida insurance commissioner has approved a decrease in overall workers’ compensation rates for 2023, and he did not demand a sharper decrease from actuaries.
The National Council on Compensation Insurance in August recommended an 8.4% average cut in rates for the voluntary market, for most classifications.
The Florida Office of Insurance Regulation on Monday announced that Commissioner David Altmaier had approved the reduction, which is the seventh straight decrease for Florida.
In four of the last six years, though, Altmaier has demanded a larger reduction than the NCCI has recommended. For 2021, the NCCI proposed a 5.7% cut but Altmaier asked for more, and ultimately approved a 6.6% decrease.
The 2023 rates take effect Jan. 1, 2023. The NCCI recommendation was based on Florida insurers’ favorable experience and trends in 2019 and 2020, as of the end of 2021, the NCCI said in its filing. The analysis found that lost-time claims have declined over the last eight years and indemnity costs have remained relatively consistent, although medical costs have been slightly more volatile.
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