New Hampshire employers could pay less for their workers compensation insurance next year because of a filing that lowers the rates and loss-cost factors insurance companies use to develop prices.
The National Council on Compensation Insurance (NCCI) filed a rate proposal in August with the NH Insurance Department to reduce voluntary loss costs by 9 percent. The loss cost is the portion of an employer’s insurance premium that pays claims costs for work-related injuries. The loss cost is ultimately used by insurance companies to set rates and premiums in the voluntary market. All insurers writing voluntary workers compensation in NH are required to use the new loss costs.
The NCCI has filed an even bigger decrease of 9.4 percent for the assigned risk, or “residual,” market. The residual market ensures access to workers compensation for companies that are not able to buy coverage on the open market. About 10 percent of workers compensation insurance is obtained this way.
“A decrease in workers compensation rates means a decrease in costs to New Hampshire businesses,” Insurance Department Commissioner Roger Sevigny said. “These considerable savings could be used to bring more workers, higher salaries, and expanded operations to New Hampshire.”
For more information on its filing, vist http://www.nh.gov/insurance/pc/workerscomp/documents/NH_filing_release_wc_010117.pdf