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Workers' compensation insurance rates will drop 5.2% in 2015, the first decrease in the rate in four years.
The Florida Office of Insurance Regulation, according to a release, approved the drop. The rates, for both new and renewal polices, are effective Jan. 1.
The National Council on Compensation Insurance, which represents about 250 insurers, had initially proposed a 3.3% rate cut. But the NCCI, after a request from Florida Insurance Commissioner Kevin McCarty, resubmitted a new rate proposal with a higher decrease, the release states. McCarty, in a previous statement, says the first rate cut proposal would lead to underwriting profits of nearly double the previous year.
“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,” McCarty says in the statement. “Florida's workers' compensation market is functioning very well, taking into account current economic conditions, and we want to ensure it remains doing so.”
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