The state Insurance Department has given the nod to a reduce voluntary loss costs proposal.
The New Hampshire workers compensation market will keep up its historically low rates right into 2021, according to a new decision made by the NH Insurance Department.
The department issued a press release explaining its approval of a new proposal for the market.
The NH Insurance Department gave its approval to a rate proposal filed by the National Council on Compensation Insurance (NCCI). This will reduce New Hampshire workers compensation voluntary loss costs by an average of 1.8 percent.
The NCCI is a licensed rating and statistical organization in the United States. It collects data and conducts industry trend analyses. With that information, it prepares workers compensation rate filings for NH and several other states across the country.
Voluntary market loss costs have been falling from one year to the next for the last eight consecutive years. Across that span of time, they have dropped by a cumulative 50 percent. The loss cost is the portion of an employer’s coverage premium that pays the cost for claims made for injuries that occur while an employee is on the job. That loss cost is a figure that insurance companies use for calculating their rates and ultimately their premiums in the volunteer market.
All New Hampshire workers compensation insurers are required to use the latest loss costs.
All insurance companies writing voluntary workers’ compensation coverage in the state must use the latest loss costs figures in calculating their rates and premiums. That said, they can make adjustments to take their own business expenses into account.
“It is encouraging to see continued stability in the workers’ compensation market,” explained Chris Nicolopoulos, the NH Insurance Department Commissioner as quoted in his department’s media release about the proposal. “Continued low insurance rates provide stability for employers during a time of financial uncertainty for many New Hampshire businesses,” he added.
These latest New Hampshire workers compensation insurance rates will be applicable to policies that become effective as of January 1, 2021. This continuation of the existing trend suggests stability within this insurance market in the state.