Workers’ Compensation Insurance Rate Filing Hearing: October 7
Oct 9, 2008
A public hearing was held on October 7, 2008, concerning the latest workers’ compensation insurance rate filing made by the National Council on Compensation Insurance (“NCCI”).
Florida Insurance Commissioner Kevin McCarty presided over the hearing. Also attending from the Florida Office of Insurance Regulation (“OIR”) were:
- Jim Watford, Actuary
- Dr. Ray Spudek, Director of Market Research
- Belinda Miller, Deputy Commissioner
- Mike Milnes, Deputy Director
Other participants included:
- Stephen Alexander, Actuary, Office of the Consumer Advocate
- Lori Lovgren, State Relations, NCCI
- Tony DiDonato, Director and Senior Actuary, NCCI
- Martin Wolf, Economist, NCCI
- Steven Lattanzio, Consulting Actuary, Actuarial & Technical Solutions
The NCCI rate filing calls for an overall average rate decrease of 14.1 percent statewide, which, if approved, would produce savings of more than $465 million for Florida employers. The rate decrease, which would become effective in 2009, would be the sixth consecutive rate decrease since the Florida Legislature passed reforms in 2003. The cumulative overall statewide average rate decrease since 2003 then would total 58.3 percent.
Ms. Lovgren detailed the components of NCCI’s rate filing. The filing components are as followed:
- Change in Loss Experience: – 16%
- Change in Trends: – 3.4%
- Change in Benefits: + .1%
- Loss Adjustment Expense: + 1.4%
- Production & General Expenses: – .4%
- Taxes & Assessments: 0%
- Change in Profit & Contingencies: + 4.7%
A representative from NCCI attributed the requested rate decline to a significant drop in claims frequency and reduction in claim costs.
Commissioner McCarty indicated that the lower rates will have a positive impact on the Florida marketplace, as well as Florida’s business owners and their employees. He also stated that measures taken to reduce fraud and abuse in the system are paying off.
Commissioner McCarty and his staff will review all testimony and facts presented at the hearing in making a decision. The record will remain open until Monday, October 13, 2008.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
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