Workers’ compensation loss costs in Tennessee will drop an average of 9.4% for the voluntary market starting March 1, marking the 11th straight decrease for the state.
The decrease follows declines of 10.2% in 2023 and 5.6% in 2022, the Tennessee Department of Commerce and Insurance said Tuesday.
“Tennessee’s workforce will benefit from these loss cost reductions because they are the result of decreases in lost-time claim frequency and more stable claims costs,” said Insurance Commissioner Carter Lawrence, who approved the decrease in a Dec. 30 order.
The decline in overall loss costs was similar to drops in other states and reflects a nationwide trend toward fewer reported workplace injuries and lower indemnity costs, experts have said. The Tennessee decrease was based on a September filing by the National Council on Compensation Insurance and recommendations from the Tennessee Advisory Council on Workers’ Compensation. The NCCI recommended an 11.1% overall decrease, while the advisory council called for a 7.7% drop, based on calculations from By the Numbers Actuarial Consulting firm.
The commissioner also approved a smaller loss cost multiplier – 1.824 – for the voluntary market and a rate decrease for the assigned risk market of 9.7%.
Related: Are Some Florida Comp Judges Toeing the Line on Attorney Fees?
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