OIR Releases Annual Workers’ Compensation Report To The Florida Legislature

The Florida Office of Insurance Regulation (“OIR”) has released its annual state of the market report for workers’ compensation insurance to the Florida Legislature.  To view the report, click here, or download the attached file.

The OIR’s press release on the report is below.

Additional upcoming workers’ compensation matters:

• The Florida Division of Workers’ Compensation is proposing to amend Rule 69L-24.0231, F.A.C. The purpose of the amendment is to provide a thirty-day time period within which a Claims Administrator will not receive a late filing penalty for any First Reports of Injury or Illness accepted by the Division of Workers’ Compensation after the Claims Administrator is first approved by the Division to electronically submit such reports to the Division. The Rule workshop is scheduled for Monday, January 7, 9:00am – 12:00 pm in Room 104 J of the Hartman Bldg., 2012 Capital Circle S. E., Tallahassee, Florida. To view the Rule, click here.
• To view an informational memorandum from the Florida Department of Financial Services reminding of the maximum workers’ compensation rate effective date of January 1, 2008, click here.
• To view a recent Florida Senate Interim Project report on the regulation of money services businesses with workers’ compensation impact, click here.

Should you have any questions or comments, please do not hesitate to contact this office.

 

Florida Office Of Insurance Regulation Releases Annual Workers’ Compensation Report To The Florida Legislature

TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) on December 31, 2007 released its annual report on the state of the market for workers’ compensation insurance to the Florida Legislature.
 
The report analyzes the availability and affordability of coverage for workers’ compensation insurance in Florida for the calendar year 2006 and concludes that Florida is the largest market dominated by private market insurers (as compared to state sponsored residual market entities such as those in New York and California).
 
In addition, the Office approved an overall rate reduction of 18.4 percent, effective Jan. 1, 2008, marking the fifth consecutive year of workers’ compensation rate decreases. The newest rate reductions will give Florida businesses a cumulative decrease of 51.4 percent since legislative reforms were enacted in 2003.
 
“The 2007 report provides additional evidence that the Florida Legislature’s reforms continue to be effective,” said Insurance Commissioner Kevin McCarty. “More important, reductions in workers’ compensation rates show that the state of Florida is committed to being a good place to do business.” 
 
The report highlighted other favorable trends in Florida’s workers’ compensation market: Overall workers’ compensation claim frequency is on the decline, which continues to offset any increases in claim severity costs; companies are performing well in their underwriting, and the Florida Workers’ Compensation Joint Underwriting Association, the insurer of last resort, had only $37.3 million in written premium in 2006 – less than 1 percent of the Florida market. Through November 2007, written premium had declined further to $19.2 million.

Florida also welcomed five new workers’ compensation writers in 2006; the five companies are domiciled in Florida, Delaware, Iowa, New York and Wisconsin – another indication of the vitality of the Florida marketplace.
 
The report is prepared pursuant to requirements of Section 627.211(6), Florida Statutes and fulfills the requirements of Section 627.096, which requires the Office to provide comprehensive information to assist in the review of workers’ compensation rate filings.
 
A copy of the 2007 Annual Workers’ Compensation Report is available for review by clicking here.

Copies of reports from 2004-2006 are available on the Office’s Web site at www.floir.com.