Workers' Comp Rates Going Down...Again
Contrary to claims that attorney fees paid to lawyers for injured workers are driving up workers’ compensation rates, Florida businesses are in line for yet another rate cut. Following the Supreme Court’s decision in 2016 that attorneys for injured workers should be paid reasonable fees, the insurance industry pundits declared a state of crisis for Florida businesses and insisted on double digit rate increases. However, the crisis has never materialized. The Department of Insurance Regulation has approved a 1.8 percent rate decrease. The reduction applies to new and renewing workers’ compensation policies effective June 1.
This is the second rate cut approved by the Insurance Commissioner in the past year. Just a few months ago, a 9.5 percent reduction went into effect on Jan. 1 when NCCI (the organization responsible for advising Florida’s Insurance Commissioner) admitted the prior year’s increase to rates was premature and based on insufficient evidence.
It’s time for Florida business’ to pay attention to the process of how rates are set. These decreases are coincidentally happening at the same time that efforts are being made to update how rates are determined. Could NCCI be recommending the rate decreases to take the spotlight off the archaic non-competitive rate making Florida still uses?