Workers' Compensation Rate Decrease
On Tuesday Florida Insurance Commissioner David Altmaier announced that a 1.8% decrease in workers’ compensation rates was approved. This is stemming from the tax overhaul that occurred in December. The decrease will take effect for new and renewal workers’ compensation policies effective June 1, 2018.
Florida Insurance Commissioner David Altmaier said, “NCCI has demonstrated through its rate filing that this decrease is an actuarially-sound response to the savings workers’ compensation insurers have realized as a result of recent federal legislation. The data indicates that passing the savings along to businesses through a rate decrease is an appropriate response at this time.”
The workers’ compensation market has seen some volatility in rates since theCastellanos decision in 2016 which resulted in a 14.5% increase in December of 2016, followed by a 9.8% decrease January 1, 2018 and now an additional 1.8% decrease effective June 1st. Workers’ compensation reform was introduced by both the Florida House of Representatives and the Florida Senate in the 2017 session and was close to passing, but the issue on the cap of attorney fees caused a stall. With the 9.8% decrease in January of 2018 pulling back pressure from lobbyists, the issue lost momentum and wasn’t a priority for the legislature, hence there has been no significant legislation to stabilize the market.
If you have any questions, please contact your BKS representative.