Earlier today, the Florida Chamber of Commerce met with the National Council on Compensation Insurance (NCCI) to review the proposed 2023 workers’ comp rates. NCCI, which files workers’ comp rates on behalf of Florida carriers, has proposed an 8.4 percent average decrease across industrial classifications and a 14.9 percent average decrease for federal classifications. If approved by the Office of Insurance Regulation, new rates will take effect for new and renewal policies beginning on January 1, 2023.
Main contributors to this year’s rate decrease are declining frequency of claims and increased premium. While medical costs have fluctuated over time, the cost of indemnity per case has remained relatively consistent. Declining frequency, a trend that has lasted at least 8 years, means workplaces are continuing to be safer. Wage inflation and strong employment numbers will increase the amount collected in premium, which in turn, will cover the higher wage replacement and indemnity costs as a result of increased wages. For a full analysis of this year’s rates, click here or to view the presentation, click here.
The Chamber will keep members updated as the proposed rate filing moves through the Florida Office of Insurance Regulation’s approval process, which could include a public hearing for businesses and insurance carriers to offer feedback. Additionally, our partners at the Florida Chamber will continue to advocate for reforms to cost drivers in the workers’ comp system before the legislature or through agency rulemaking. This is the 7th consecutive workers’ comp rate decrease since the last rate increase in December of 2016. Since the last major workers’ comp reform in 2003, workers’ comp rates in Florida have decreased by roughly 71 percent.