Work Comp Rate Hearing

Workers’ Compensation Rate Hearing
On October 5, 2010, the Office of Insurance Regulation (OIR) held a public hearing to discuss the workers’ compensation rate increase of 8.3 percent being proposed by the National Council on Compensation Insurance (NCCI). The NCCI argued that the reforms to the workers ‘compensation laws enacted since 2003 are beginning to level out and have resulted in a new baseline upon which the new rates are built.

The request by NCCI for a rate increase is the first since legislative passage of SB 50A in 2003 which overhauled the workers compensation system. Since the 2003 reforms, workers’ compensation rates have fallen by 62 percent.

During the public hearing, one suggestion was to have carriers file rates individually instead of across the board with NCCI. The proponent pointed out that Florida’s injured workers were not satisfied with their medical treatments. Average increase applies to all insurers—flip side is that insurers may not all need an increase, some may need a decrease. Individual filings based on individual experiences would reflect different increases.

Proponent believes NCCI does not include anything in their filing that shows these rates are not unfairly discriminatory, excessive, or inadequate. OIR expressed concerns about workload if carriers filed individually with a current staff of 7 actuaries. Currently, NCCI filing represents 250 insurance companies.

Just before adjournment of the meeting, two members of the Florida Roofing, Sheet Metal & Air Conditioning Contractors association testified expressing concerns about destabilization of rates and the impact on their roofing businesses. OIR will review the comments and information presented at the public hearing and grant a determination based on the actuarial information as to the appropriate rate adjustment. - Source FBMA