Workers Comp Rates Set To Decline, Labor Group Says Not Far Enough

Workers Comp Rates Set To Decline, Labor Group Says Not Far Enough

After spiking last year, worker’s compensation rates in Florida are set to decline. But some labor organizations contend the decrease doesn’t go far enough.
It was concerned about two court cases scrapping attorney fee provisions in state law.
Even though the company will eventually pay out slightly more than it originally collected, the returns those investments generated more than make up for the loss. It might sound precarious, but Alexander explains in other states insurers were able to generate 18 percent pre-tax returns.

How video is helping this insurer deliver on engagement

How video is helping this insurer deliver on engagement

It’s not always possible for a brand to provide personalised contact through every engagement with a customer. But for workplace injury insurance provider, Employers Mutual Limited (EML), it may have found the next best thing.
According to EML customer experience manager, Helene Swindells, while her company works hard to guide claimants, it still requires them absorbing a lot of complex information at the start of the claim process.
“Because there was so much information that we wanted to give people, being able to let people pick and choose what they wanted to watch when they wanted to watch it was important,” she says.
“We have only been going for a couple of weeks, but the feedback has been really positive,” Swindells says.
“We are hoping this is a starting point not only for us but for the industry, because there are lot of interactions through the life of a worker’s compensation claim that would probably benefit from this, where we have to give quite a bit of information all at once,” Swindells says.
“Then it is really about designing the storyboard and working with the creative team in building that content,” he says.

Kansas business owners see workers compensation insurance rate decrease again

Kansas business owners see workers compensation insurance rate decrease again

“This rate decrease means that many Kansas companies will have more money to grow their businesses. “This happens because they will pay less to fund costs to cover medical claims costs and lost wages for job-related injuries and deaths, and to help fund workplace safety and health programs,” said Commissioner Selzer.
The decreases affect many of the approximately 65,000 Kansas businesses that pay workers compensation insurance.
The 2018 rate filing for the worker’s compensation rate shows a decrease of 7.6 percent in the voluntary base rate and a decrease of 5.8 percent for assigned risk workers compensation rates.
Adding together the rate decreases Kansas business owners saw in 2015, 2016, 2017 and now 2018, over a four-year period, the rates will have dropped almost 39 percent in the voluntary base rate and nearly 39 percent in the assigned risk rate.
“Voluntary workers compensation base rates are used by all insurance companies writing workers compensation in the competitive market,” said Heather Droge, Director of the Property and Casualty Division at the Kansas Insurance Department.
In Kansas, 65 percent of workers compensation benefit distribution goes to pay medical claims, and 35 percent goes to indemnity claims, according to statistics from the National Council on Compensations Insurance, Inc.
The 2018 NCCI filing applies to all insurance carriers writing workers compensation policies for businesses in the state.

Connecticut employers may see drop in workers comp costs

Connecticut employers may see drop in workers comp costs

Connecticut companies could be in for a break on their workers compensation costs next year, after insurance carriers requested a 14.1 percent reduction on average in the “loss cost” formula which helps determine rates.
The National Council on Compensation Insurance’s request is subject to the approval of the Connecticut Insurance Department. Connecticut employers are required to carry workers compensation insurance, which can be used to cover both medical treatment for workplace injuries as well as pay for days people are unable to work.
NCCI also requested a 12.6 percent cut on average for the loss costs it charges companies that get workers compensation coverage through an assigned-risk pool, as a “market of last resort” in cases where they are unable to find affordable rates due to a higher risk of injuries in their workplaces.
For standard policies, office employers would see the biggest decline with a 17 percent average drop in the loss-cost portion of their rates, subject to wide variance depending on the carrier and policyholder. Retailers and other purveyors of goods and services would see the smallest reduction, at 12.5 percent.
In its filing, NCCI stated the frequency of lost-time workers compensation claims dropped “considerably” last year amid an overall downward trend. Average medical costs for cases rose $470 in 2015 or 2 percent to just under $27,800.
NCCI raised slightly the loss cost it charges companies to cover any incidents of terrorism, to 5 cents for every $200 of payroll from the current rate of 2 cents.

Connecticut employers to see drop in workers comp

Connecticut employers to see drop in workers comp

Connecticut companies could be in for a break on their workers compensation costs next year, after insurance carriers requested a 14.1 percent reduction on average in the “loss cost” formula which helps determine rates.
The National Council on Compensation Insurance’s request is subject to the approval of the Connecticut Insurance Department. Connecticut employers are required to carry workers compensation insurance, which can be used to cover both medical treatment for workplace injuries as well as pay for days people are unable to work.
NCCI also requested a 12.6 percent cut on average for the loss costs it charges companies that get workers compensation coverage through an assigned-risk pool, as a “market of last resort” in cases where they are unable to find affordable rates due to a higher risk of injuries in their workplaces.
For standard policies, office employers would see the biggest decline with a 17 percent average drop in the loss-cost portion of their rates, subject to wide variance depending on the carrier and policyholder. Retailers and other purveyors of goods and services would see the smallest reduction, at 12.5 percent.
In its filing, NCCI stated the frequency of lost-time workers compensation claims dropped “considerably” last year amid an overall downward trend. Average medical costs for cases rose $470 in 2015 or 2 percent to just under $27,800.
NCCI raised slightly the loss cost it charges companies to cover any incidents of terrorism, to 5 cents for every $200 of payroll from the current rate of 2 cents.