Augusta, ME – Acting Superintendent Timothy Schott recently announced approval of the National Council on Compensation Insurance, Inc.’s (NCCI) 2023 loss costs for Maine, filed 01/11/2023, which proposed an average loss cost decrease of 11.9%. The new NCCI loss costs go into effect for new and renewing policies as of April 1, 2023.
“The most recent NCCI filing is good news for Maine businesses,” Schott stated. The decrease should result in lower workers compensation premiums for most Maine employers.
The recently filed NCCI loss costs represent a cumulative decrease of 69.2% since the 1992 workers compensation reform. If all insurers fully adopt the decrease, Maine businesses could save an estimated $30 million in the year following implementation.
Loss costs are based on previous and projected losses and benefit payments. NCCI is the advisory rating organization for insurance companies that offer workers compensation coverage in Maine. NCCI-approved loss costs are available to insurers to reference when filing their workers compensation rates with the Bureau of Insurance.
The 11.9% decrease is an average loss costs change, which ranges from a decrease of 9.8% to a decrease of 13.4% depending on the industry group. This is an average decrease so most Maine businesses should see decreases in premiums, but some individual businesses may see increases.
Maine has a competitive market for workers compensation insurance and each insurer sets its own rate level, subject to review by the Bureau. Insurers may also modify the NCCI loss costs, and they select their own expense and profit factor in setting rates.
Source: ME Bureau of Insurance