Workers’ Compensation Rates Down by Double Digits in 2022
BATON ROUGE — From the Louisiana Department of Insurance:
Louisiana Insurance Commissioner Jim Donelon has approved the annual loss cost filing of the National Council on Compensation Insurance (NCCI) for a -10.5% reduction in workers’ compensation rates. The decrease will take effect May 1, 2022.
This year’s filing continues the downward trend of eight of the last nine years, including the upcoming 2022 rate decrease. Workers’ compensation rates have fallen dramatically over the past two decades. They have had a cumulative drop of -25% over the last five years, -38% over the last ten years, and -57% over the past 20 years.
“Workers’ compensation rates have been a great success story in our market,” said Donelon. “We’ve seen a strong downward trajectory in rates over the past two decades, including this year’s double-digit decrease. Our workers’ compensation market is thriving, and that’s great news for Louisiana employers.”
The mission of the National Council on Compensation Insurance (NCCI), which was founded in 1923, is to foster a healthy workers’ compensation system. In support of this mission, 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 (LDI).
The total Louisiana workers’ compensation insurance market in 2021 is estimated to have about $850 million in written premium. Louisiana has a record 249 companies writing workers’ compensation insurance, creating a very competitive market.