Work Comp Rates are on the Decline

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Many States have Work Comp Rates that are Changing in 2018.  

Work Comp is the only Commercial Insurance Line going down, but most states have rates that are going to decrease significantly in 2018.  The second half of the year, is when the governing body for the workers compensation system in each state makes the decision to set rates on different classification codes. So far in 2017, 36 out of 50 states are deciding to decrease their work comp rates. Several states are seeing significant decreases. According to Business Insurance, 13 states show rate-decrease filings of between 10% and 16.3%.

Work Comp Rates are on the decline in 2018.

Here are a list of several recommendations from NCCI and State governing bodies throughout the US.


The NCCI is recommending a 12.7 percent decrease in rates for 2018. The reason for this significant of a decrease in Colorado is related to ongoing efforts by employers to prevent workplace injuries. Also included in the reasons for the significant decrease in work comp rates is the declining or stabling figures in frequency of claims, duration of claims, severity of injuries and medical costs.


NCCI recommends a 10.9% workers compensation premium rate decrease for Illinois.


The 2017 rate filing, which will impact rates in 2018 is an average reduction of 4.6 percent for work comp rates.

New Mexico

The New Mexico Office of Superintendent of Insurance has announced an average 16percent reduction in workers compensation pure premiums for 2018.

West Virginia     

NCCI recently filing for a 10.3 percent reduction in work comp rates with the state Insurance Commission.


The Idaho Department of Insurance has received a proposal from the NCCI for an overall rate drop of 5.8 percent percent to workers’ compensation insurance. This rate has not yet been approved, but employers can expect a decline in work comp rates.


Montana’s state-mandated workers’ compensation insurance fund has announced it is returning a record $40 million in dividends to most of the businesses and organizations it insures.

Work Comp Rates in 2018 are decreasing in 36 out of 50 states.


The 2017 rate filing by NCCI for workers’ comp shows a decrease of 8.4 percent in the voluntary base rate and a decrease of 7.8 percent for assigned risk workers’ compensation rates. Adding together the rate decreases Kansas business owners saw in 2016, the rates will have dropped 20 percent in the voluntary base rate and 18 percent in the assigned risk rate over the past two years.


NCCI Files 12% Decrease for Tennessee Workers’ Comp Loss Costs, as a result of a decline frequency and severity of claims.


Connecticut has had a recommendation of 14.1 percent reduction on average in the “loss cost” formula which helps determine rates. This rate has not yet been approved, but employers can expect a significant decline in work comp rates.


Washington’s Department of Labor and Industries has recommended a drop of 2.5% in 2018.


NCCI has announced an 8.7 percent average reduction in premiums for Iowa employers beginning in January 2018.


Florida businesses may need help the most because of hurricanes that have ravaged the state and a workers compensation system that has been in flux for the past few years.  NCCI has recommended an average 9.3 percent reduction in workers’ compensation premiums in 2018. This reduction comes after an average increase in 2017 of more than 14 percent.


Oregon workers comp rates are dropping for fifth straight year.  They have actually declined about an average of one-third since 2013.  In 2018, Oregon employers will see a drop by an average of 14 percent, according to the Department of Consumer and Business Services.


Oklahoma will have an average decrease of 16.3 percent for 2018 work comp rates.


Michigan’s Workers’ Compensation System continues to benefit workers and job providers as the state’s pure premium advisory rate for work comp insurance will decrease by 9.3 percent for 2018. This has contributed to a cumulative decrease of 45 percent from 2011-2018, saving Michigan employers an estimated $446 million in workers’ compensation premiums

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