The National Council on Compensation Insurance on Wednesday submitted its recommendation for an 8.4% rate cut for workers’ compensation benefits effective January 1, 2023.
The NCCI said it is submitting that experience data for policy years 2019 through 2021 shows “(f)avorable experience” with Florida’s rate of lost-time claims that have “generally declined over the past eight years.”
The state’s average indemnity cost per case has been relatively consistent over time, while those for medical have been somewhat more volatile from year to year, NCCI said.
The final proposed change in the interest rate occurs after incorporating small increases in current production/overhead costs and provisions for claims settlement costs. And due to the catastrophic nature of the covid-19 pandemic, NCCI said all reported covid-19 claims have been excluded from assessment, consistent with last year’s assessment filing.
While inflation can affect costs, NCCI said wage inflation and a strong recovery in employment are expected to increase premiums, and the impact of medical inflation on workers’ compensation losses is expected to be less than inflation for other goods and services. “The long-term trend of declining injury rates is expected to continue,” NCCI said.
The Florida Office of Insurance Regulation must still approve the reduction.