Breaking News: Proposed Average 15.1 Percent Decrease in Workers’ Comp Rates
Last week, the Florida Chamber of Commerce met with the National Council on Compensation Insurance (NCCI) to review the proposed 2024 workers’ comp rates. NCCI, which files workers’ comp rates on behalf of Florida carriers, has proposed a 15.1 percent average rate decrease – the largest proposed rate decrease in over a decade. If the filing is approved by the Office of Insurance Regulation, rates will take effect for new and renewal policies beginning on January 1, 2024.
Details:
The main contributor to this year’s rate decrease is the change in how Floridians are experiencing the workplace following the COVID-19 pandemic. The workforce has undergone significant changes the previous two years, including a notable shift to remote and hybrid work models. This has continued the decline in frequency and severity of claims, a national trend that has resulted in rate reductions in several states as well as Florida. For an overview of this year’s rate filing, click here or to view the presentation, click here.
Next Steps:
The Florida Chamber will keep members updated as the proposed rate filing moves through the Florida Office of Insurance Regulation’s approval process, which will include a public hearing for businesses and insurance carriers to offer feedback. The hearing is expected to take place in mid to late October, but has not been officially scheduled yet. This is the eighth consecutive proposed workers’ comp rate decrease since the last rate increase in December of 2016. Since the last major workers’ compensation reforms in 2003, workers’ comp rates in Florida have decreased by 73.8 percent, 77.7 percent if the proposed 2024 rate filing is included.
Call to Action:
The Florida Chamber is constantly advocating to reduce cost drivers and improve efficiency in the workers’ compensation system, and our Safety Council is working to improve safety in the workplace. If you have questions on the proposed rate filing, wish to provide feedback on the workers’ compensation system, or learn more about the Florida Chamber’s efforts, please contact Chad Kunde at ckunde@flchamber.com or (850)521-1268.