09/05/2023
The National Council on Compensation Insurance (NCCI) has proposed an average rate decrease of 15.1% for Florida, set to take effect from January 1, 2024. This stands out as one of the most significant proposed reductions in over a decade.
This proposal is currently under review by the Florida Office of Insurance Regulation and awaits their approval. The basis for this recommendation arises from the loss data of the policy years 2020 and 2021.
A contributing factor to this positive shift is the commendable performance of Workers Comp carriers. They reported a combined ratio of 84%, marking the sixth consecutive year it's remained below 90%. The combined ratio is a measure of carrier profitability. It is important to note, the NCCI's analysis excludes claims related to COVID-19, which they categorize as a catastrophic event.
What implications does this carry for our insures? They can anticipate more competitive rates coupled with tighter underwriting standards. Some carriers have raised the baseline requirement to underwrite specific business classes. Additionally, businesses with challenging loss histories may face non-renewal or be presented with renewal terms contingent on consent to rate(CTR), which is an additional charge to offer coverage.
Given these changes, it underscores the importance of robust safety programs, ensuring you garner the best options from carriers.
Should you wish to discuss or review your program considering these developments, please don't hesitate to reach out to us at 239-919-3916. We're here to assist you.
