After rejecting the first proposal from the National Council on Compensation Insurance (NCCI) of a 3.3 percent overall decrease in workers’ compensation rates, Florida Insurance Commissioner Kevin McCarty has accepted the updated rate filing of 5.2 percent.
Florida’s Office of Insurance Regulation (OIR) issued an order earlier in November saying the state would not accept the NCCI’s first proposal.
The OIR informed NCCI that it could refile the reduction at 5.2 percent by Nov. 11 to be approved for policies beginning Jan. 1. The difference in percentage is due to the disapproval of production expenses, medical trends and profit and contingency factors.
Originally, the NCCI proposed an increase from 2.5 percent to 4.5 percent in its profit and contingency factor. But according to McCarty, there has not been a significant change in the economy to warrant such an increase.
The OIR also requested other changes, including:
- A profit and contingency factor increase of no more than 2.5 percent
- A requirement that the NCCI list and explain each change in its proposed rating manual
- A monthly report to the OIR detailing the average intrastate experience modification factor for policies effective during the month
Stay tuned to Purpose Employer Solutions, Inc. for more updates. Or contact a licensed agent at (941) 497-7737.