Workers’ Compensation Rates Continue Downward Trend
NEW ORLEANS – Louisiana Insurance Commissioner Jim Donelon said he approved the annual loss cost filing of the National Council on Compensation Insurance effective May 1, 2021. The filing reduces workers’ compensation rates by 4.1% and continues the downward trend of seven of the last eight years. Rates have had a cumulative drop of 25% over the last five years.
“I’m happy to announce the continued reduction in rates for the workers’ compensation market in Louisiana,” said Donelon. “For years we’ve seen these rates come down due to competition in the market, improved workplace safety and better risk management practices. In a time where many small businesses are struggling, I’m glad that workers’ compensation insurance can be a line in their budgets that is decreasing.”
Founded in 1923, the NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations to its 35 member states and the District of Columbia. NCCI members can adopt the approved rate or they can include NCCI’s analysis with their own loss experience to complete their own rate filing with the Louisiana Department of Insurance.
The Insurance Commission says the total Louisiana workers’ compensation insurance market is estimated to be just shy of $900 million in total premium and has 247 companies writing workers’ compensation insurance policies.