14.1% Drop In Fla. Comp Rates Proposed

Workers’ compensation insurance rates in Florida would see an overall average decrease of 14.1 percent statewide under the latest proposed rate filing, it was announced.

Florida Insurance Commissioner Kevin McCarty said in a statement that he has received the latest rate filing from the National Council on Compensation Insurance for rates that would become effective next year if approved.

He said the recommended drop in rates would produce a savings of more than $465 million for Florida employers.

Boca Raton, Fla.-based NCCI, which produces and files rates for insurers, said the rate decline was primarily due to a significant drop in claims frequency and a reduction in the costs of claims.

The rate decrease, if approved, would be the sixth consecutive drop since the Florida Legislature passed extensive reforms to the state's workers' comp system in 2003. The cumulative overall statewide average rate decrease since 2003 would total 58.3 percent.

Commissioner McCarty said, "These lower workers' compensation rates will have a positive impact on every segment of our marketplace. It is great news for business owners and their employees, because Florida employers are paying lower rates and benefits are being delivered fairly and effectively. The reduction of fraud and abuse in the system is certainly paying off."

According to the OIR, prior to the legislative reforms, the state of Florida consistently ranked No. 1 or No. 2 in the country for the highest workers’ comp rates; however, post-reform, Florida has dropped out of the top 10 rankings.

The OIR said a hearing on the filing will be scheduled in October, and the rate change would be effective for new and renewal business as of Jan. 1, 2009.

The revised Florida comp insurance law passed in 2003 instituted provisions for enhanced fraud compliance and revised permanent and temporary disability definitions. It also set new parameters for attorney and physician compensation and improved dispute resolution procedures, in addition to making many other improvements to the system.