The Florida Office of Insurance Regulation (OIR) has approved an overall 4.7 percent decrease in workers’ comp rates in Florida. The decision follows an initial NCCI filing in the state for a 1.9 percent decrease, which was disapproved by Insurance Commissioner Kevin McCarty. McCarty issued an order demanding a 5.1 percent reduction. Earlier this week, NCCI resubmitted its initial filing to the OIR with additional documentation aimed at explaining the data behind the filing. NCCI requested that the Office re-evaluate three specific items pertaining to its annual rate filing: expense constant, indemnity trend, and the profit and contingency factor. The Final Order (PDF) re-confirms the Office’s denial of the requested modifications to the expense constant and indemnity trend. However, the Office granted an increase in the profit and contingency factor from the current approved 2.5 percent to 2.75 percent, which lowered the decrease in workers’ compensation rates from 5.1 percent to 4.7 percent overall. The new rates become effective January 1st, 2016.
Read more via WorkCompWire here.