A workers’ compensation data analysis recommends a 4.9% decrease in the workers’ comp insurance rates paid by Florida employers, suggesting that workplaces are becoming more safe.
The National Council on Compensation Insurance (NCCI) filed its recommendation to cut the statewide average workers’ comp premium by 4.9% with the Florida Office of Insurance Regulation (OIR) at the end of August.
Florida business groups applauded the recommendation, saying it is the result of employers’ strong commitments to providing safe working environments. If approved, the rate cut would take effect in January 2022.
Carolyn Johnson is senior policy director for the Florida Chamber of Commerce.
“The continued decrease in rates indicates that Florida employers care more about their employees than their profits,” Carolyn Johnson, senior policy director for the Florida Chamber of Commerce, told the Florida Record in an email. “Creating a safety culture within an organization is essential to achieving the results of a safer and more sustainable workplace, which decreases injuries and time out of work for employees.”
In addition, the state’s 2003 reforms to reduce factors that lead to higher workers’ comp rates, such as frivolous workplace-related litigation, are paying off, according to Johnson.
“While the Florida Chamber understands our lawsuit environment and rising attorney fees are an anchor on workers’ comp rates, we know through the work of the Florida Chamber Safety Council that employers faced with fewer accidents will have fewer claims, which in turn will lead to further decreases in rates,” she said.
The Florida OIR said it would determine whether to accept or modify the NCCI’s rate recommendation.
“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,” the office said in a news release.
An overview of the NCCI’s recommendation notes that its findings are based on data from 2018 through the end of 2020.
“Florida’s lost-time claim frequency continues its decline while the state’s average indemnity and medical costs per lost-time claim have exhibited relatively more year-to-year volatility,” the summary states.
The NCCI rate finding does not include any data or adjustments related to the coronavirus pandemic. It has proposed, however, that a new catastrophe provision be implemented in the state whenever an event, such as a pandemic, leads to workers’ comp losses nationwide that exceed $50 million.
Overall, the summary says fewer workers’ comp cases are the result of technology, better workplace safety records, improved risk management, and a shift away from manufacturing and toward a more service-oriented economy.