Tallahassee, FL – The Office of Insurance Regulation (OIR) has received the 2019 Florida workers’ compensation rate filing by the National Council on Compensation Insurance (NCCI), which proposes a statewide average premium decrease of 13.4%. The new rates would become effective January 1, 2019.
As always, OIR will review the filing to ensure the proposed changes are not excessive, inadequate or unfairly discriminatory and evaluate its potential effects on the insurance marketplace and employers, who are required by law to carry this insurance on their employees. A public rate hearing will be conducted in October.
NCCI is a licensed rating organization authorized to make rate filings on behalf of workers’ compensation insurance companies in Florida.
NCCI Noted that the filing, which was based on experience data as of year-end 2017 from Policy Years 2015 and 2016, shows continued significant improvement in loss experience. This is consistent with prior experience filings in Florida and in line with most filings submitted thus far by NCCI in other states in 2018.
In 2016, two separate Florida Supreme Court decisions resulted in changes to the Florida workers compensation landscape. Those cases, Castellanos v. Next Door Company, et al. and Westphal v. City of St. Petersburg, et al. brought about retroactive changes to claimant attorney fee and benefit levels. However, the favorable loss experience in Policy Years 2015 and 2016 has more than offset the combined cost increases that have emerged from those Court decisions.
For this filing NCCI said that about 50% of the data analyzed relates to policies that became effective after the Castellanos and Westphal decisions. NCCI believes the Castellanos and Westphal decisions are now exerting upward pressure on system costs, and they will continue to influence Florida workers compensation insurance rates. Policy Year 2017 will be the first full policy year post Castellanos; however, the full effects of that decision will not materialize for several years to come.
For more information about the filing, read the NCCI 2019 Filing Summary (PDF).
Source: FL OIR