Concord, NH – New Hampshire employers could pay less for their workers compensation insurance next year because of a filing that lowers the rates and loss cost factors insurers use to develop prices.
The National Council on Compensation Insurance (NCCI) filed a rate proposal in August with the New Hampshire Insurance Department to reduce voluntary loss costs by 13.3%. The loss cost is the portion of an employer’s insurance premium that pays claims costs for work-related injuries. The loss cost is ultimately used by insurers to set rates and premiums in the voluntary market. All insurers writing voluntary workers compensation in New Hampshire are required to use the new loss costs, along with a loading to cover company expenses.
The NCCI has filed a decrease of 10.3% for the assigned risk, or “residual,” market. The residual market ensures access to workers compensation for companies that are not able to buy coverage on the open market. About 9% of workers compensation insurance is obtained this way.
“A decrease in workers compensation rates means a decrease in costs to New Hampshire businesses.” said Insurance Department Commissioner Roger Sevigny. “These considerable savings could be used to bring more workers, higher salaries, and expanded operations to New Hampshire.
The NH Insurance Department held a public rate hearing on September 21 to give NCCI an opportunity to discuss the filing and interested parties and other stakeholders the ability to provide testimony or comments. After a short public comment period, Commissioner Sevigny will issue a decision on the filing, and the new rates will apply to policies effective January 1, 2018.
“The decrease in workers compensation rates is great news for job creators and seekers all across the Granite State,” said Governor Chris Sununu. “This will increase New Hampshire’s advantage with regards to attracting, retaining, and growing jobs.”
Source: NH Insurance Department