Commissioner of Insurance Jim Donelon announced that rates for
workers' compensation insurance will decrease in Louisiana effective
May 1, 2015. Commissioner Donelon recently approved a 2.4 percent
decrease in workers' compensation loss costs submitted by the National
Council on Compensation Insurance (NCCI). NCCI is a national organization
which analyzes workers' compensation data and files loss costs or rates
in 35 states.
Most workers' compensation carriers in Louisiana use the NCCI annual
loss cost filing to formulate their insurance rates. This loss cost
reduction marks a cumulative drop of 37 percent since 2006 and a
56 percent drop since 1995.
"Companies today are paying half as much for the same coverage as
they were 20 years ago, and about one-third as much as they were
paying just ten years ago," said Commissioner Donelon. "While many
states are seeing their workers' compensation costs going down, we
are also seeing some states with increasing rates. We are pleased
that Louisiana businesses are seeing a second successive year of
declining loss costs that are coming as the result of fewer and
less severe workplace injuries."
Ten-Year Loss Cost Changes
Year NCCI Change Effective
|
Loss Cost Change
|
2006
|
-0.6%
|
2007
|
-15.8%
|
2008
|
-8.6%
|
2009
|
-17.4%
|
2010
|
-4.3%
|
2011
|
+4.2%
|
2012
|
+6.0%
|
2013
|
+2.5%
|
2014
|
-5.1%
|
2015
|
-2.4%
|
The total Louisiana workers' compensation market is estimated to be
more than $810 million in total premium.