TALLAHASSEE, Fla. –
Florida Insurance Commissioner Kevin
McCarty today issued an Order notifying the National Council on Compensation
Insurance (NCCI) that its proposed 3.3% overall decrease in workers’
compensation rates in Florida as filed has been disapproved. NCCI, which files
on behalf of approximately 250 workers’ compensation insurers with Florida
policyholders, can re-file an overall rate reduction of 5.2% instead by next
Tuesday and receive final approval.
After a careful review and analysis
by the Office, the filing reflected an increase in the underwriting profit and
contingency provision from its current approved 2.5% to 4.5% that was deemed
excessive and unsupported.
“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,” said Commissioner
McCarty. “Florida’s Workers’ Compensation market is functioning
very well, taking into account current economic conditions, and we want to
ensure it remains doing so.”
The required re-filing by the Office is to include a negative 2% annual trend for indemnity costs and a positive 0.5% annual trend for medical costs. The new rates would be effective January 1, 2015 for new and renewal policies. For more information about the 2015 NCCI annual rate filing, visit the Office’s “Past Public Rate Hearings By Date” website page.
The required re-filing by the Office is to include a negative 2% annual trend for indemnity costs and a positive 0.5% annual trend for medical costs. The new rates would be effective January 1, 2015 for new and renewal policies. For more information about the 2015 NCCI annual rate filing, visit the Office’s “Past Public Rate Hearings By Date” website page.
