Workers’ comp premiums to decrease in 2017
Maine’s Bureau of Insurance approved a 4.3% decrease in workers’ compensation loss costs, which is expected to result in approximately $9.5 million in expected savings for Maine businesses.
The new National Council on Compensation Insurance Inc.’s rates went into effect for new and renewing policies on April 1.
“This decrease is expected to save Maine businesses more than $9.5 million, and result in a cumulative decrease of 53.6% since the 1992 workers’ compensation reform,” Maine Superintendent of Insurance Eric Cioppa said in a release. “These savings are the result of successful efforts by Maine employers and employees to improve safety in the workplace, return injured workers to employment as soon as possible, and control medical costs.”
Loss costs are based on previous and projected losses and benefit payments, which triggers lower workers’ compensation premiums across all industries, Cioppa said.
NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage in Maine. NCCI-approved loss costs are available to insurers to reference when filing their workers’ compensation rates with the Bureau of Insurance.
Maine currently has a competitive market for workers’ compensation insurance and each insurer sets its own rate level. Insurers may modify the NCCI loss costs and must select their own expense and profit factor in setting rates.
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