On Friday, the Florida Office of Insurance Regulation approved an average 4.9 percent rate decrease for new and renewal policies beginning on January 1, 2022. This means that since the last major workers’ comp reform led by the Florida Chamber in 2003, workers’ comp rates in Florida have decreased by nearly 70 percent.
Why Did Rates Go Down?
The National Council on Compensation Insurance (NCCI), which files workers’ comp rates on behalf of Florida carriers, cited strong underwriting results, or an underwriting profit, as the reason for the decrease. In addition to underwriting discipline, technology, safer workplaces, improved risk management and a shift from manufacturing to the service sectors have driven down the frequency of claims. NCCI’s filing does not include an adjustment for COVID-19, however, they have filed a separate proposed catastrophe provision, which was later withdrawn.
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