Yesterday, the Florida Office of Insurance Regulation approved a statewide average workers’ compensation rate decrease of 8.4 percent. The rate decrease takes effect for new and renewal workers’ compensation insurance policies beginning after January 1, 2023.
The 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 constant. Declining frequency, a trend that has lasted at least eight years, means workplaces are continuing to be safer. Wage inflation and strong employment numbers increase the amount collected in premium, which in turn, covers the higher wage replacement and indemnity costs as a result of increased wages. To watch the Office of Insurance Regulation’s public hearing in advance of approving the workers’ comp rate decrease, click here.
Along with our partners at the Florida Chamber, we 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 decrease since the last rate increase in December of 2016. Florida businesses have seen a nearly 74% reduction in their rates over the last twenty years. At a time of record inflation and when many costs seem to be increasing thanks to decisions out of our nation’s capital, the approved workers’ comp decrease is a positive decision for Florida job creators.