Florida Insurance Commissioner Kevin McCarty issued an order on Wednesday notifying the National Council on Compensation Insurance (NCCI) that its proposed 3.3 percent overall decrease in workers’ compensation rates in Florida as filed has been disapproved.
NCCI, which files on behalf of approximately 250 workers’ comp insurers with Florida policyholders, can re-file an overall rate reduction of 5.2 percent instead by next Tuesday, Nov. 11, and receive final approval, according to the announcement by the Florida Office of Insurance Regulation (OIR).
The new rates would be effective Jan. 1, 2015 for new and renewal policies.
The OIR said that after a review and analysis, OIR analysts determined the NCCI filing reflected an increase in the underwriting profit and contingency provision from its current approved 2.5 percent to 4.5 percent that was deemed excessive and unsupported.
“Just last year, NCCI requested and was approved for a 2.5 percent profit and contingency provision and the record does not reflect any significant change in the economy in the past year that would justify a near doubling of the underwriting profit,” said McCarty. “Florida’s workers’ compensation market is functioning very well, taking into account current economic conditions, and we want to ensure it remains doing so.”
The required re-filing by the OIR is to include a negative 2 percent annual trend for indemnity costs and a positive 0.5 percent annual trend for medical costs.
Related Articles:
Florida Regulators Consider NCCI Request for 3.3% Rate Decrease
Florida Workers’ Compensation Insurers Seek Bigger Rate Cut
NCCI Proposes Average Workers’ Comp Rate Decrease of 2.5% in Florida
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