Jim Donelon, commissioner of the state Department of Insurance, highlighted the findings from the study, which analyzed workers' comp rates in 35 states. Based on the report, the department approved NCCI's filing request for a 4.3 percent decrease in loss costs. Companies are in the process of adopting the new rates, which have fallen for the fourth consecutive year. The latest move follows a 17.4 percent decrease in rates in 2009, an 8.6 percent reduction in 2008 and a 15.8 percent drop in 2007. Donelon said Louisiana has had the second highest reduction since 2006 of the 35 states analyzed by NCCI.
"The continued reduction in the cost of workers' compensation insurance is good news for our state's business community as businesses struggle faced with the national economic recession, the current oil spill disaster in the Gulf, and our state's continued recovery efforts from the devastating hurricanes of 2005 and 2008," he said.
Donelon said Louisiana's workers' comp market continues to show strong signs of improvement, particularly in the area of workplace health and safety. Improved safety, he said, leads to fewer injuries across most employment classes, a trend the state has seen over the past few years and a driving factor behind the rate reduction decisions.
The total Louisiana workers' comp market is estimated to be $900 million per year in premium. According to the department, the top five writers of comp insurance in Louisiana in 2009 were the Louisiana Workers' Compensation Corporation with 24.4 percent, Liberty Mutual Group with 15.2 percent, LUBA Casualty Insurance Co. with 10 percent, American International Group with 8.8 percent and Zurich Group with 6.4 percent. The LWCC recently announced it would be dropping its rates by 4.1 percent in Oct. 1.
Read more at the WorkersComp Forum homepage.
September 16, 2010
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