Florida Rates to Decrease in 2015

The following is quoted from the Office of Insurance Regulation press release November 5, 2014

TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today issued an Order notifying the National Council on Compensation Insurance (NCCI) that its proposed 3.3% overall decrease in workers’ compensation rates in Florida as filed has been disapproved. NCCI, which files on behalf of approximately 250 workers’ compensation insurers with Florida policyholders, can re-file an overall rate reduction of 5.2% instead by next Tuesday and receive final approval.

After a careful review and analysis by the Office, the filing reflected an increase in the underwriting profit and contingency provision from its current approved 2.5% to 4.5% that was deemed excessive and unsupported.

“Just last year, NCCI requested and was approved for a 2.5% 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 Commissioner 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 Office is to include a negative 2% annual trend for indemnity costs and a positive 0.5% annual trend for medical costs.  The new rates would be effective January 1, 2015 for new and renewal policies. For more information about the 2015 NCCI annual rate filing, visit the Office’s “Past Public Rate Hearings By Date” website page.