Workers’ Compensation Insurance Rates
Released: February 26, 2009
of Insurance Jim Donelon announced today that rates for workers’ compensation
insurance continue to decrease in Louisiana, based on a recent
report from the National Council on
Compensation Insurance (NCCI) that analyzes workers compensation
rates in 35 states.
Most workers’ comp carriers in Louisiana use the NCCI annual
loss cost filing report to help formulate their insurance rates.
A recent NCCI loss cost filing showed Louisiana with a 17.4 percent
drop in loss costs, which was approved by the Department of Insurance
this month. Companies will begin adopting the new rates by filing
for a rate decrease with the Department of Insurance around late
March through September 2009, and begin using the lower rates within
approximately 45 days after approval of the adoption. This reduction
follows an 8.6 percent reduction in workers’ comp rates last
year and a 15.8 percent reduction in workers’ comp rates
in 2007, the highest reduction of the 35 states NCCI analyzes.
“This is positive news for our state’s business community
and will help greatly in our economic development efforts as Louisiana
continues to recover from the hurricanes of 2005 and 2008,” said
Commissioner Donelon. “Our market continues to show strong
signs of improvement, particularly in the area of improved worker
safety. Improved worker safety leads to fewer workplace injuries
across most employment classes, a trend we have seen over the past
few years and the leading cause of these recent rate reductions.”
The total Louisiana workers’ compensation
market is estimated to be $1 billion per year in premium.