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Maine.gov > PFR Home > Insurance Regulation > All Press Releases > Bureau of Insurance Approves Requested 3.2% Decrease in Workers’ Compensation Loss Costs
Augusta, Maine -
Insurance Superintendent Eric Cioppa announced Thursday that the Bureau of Insurance has approved the National Council on Compensation Insurance’s (NCCI) request to decrease workers’ compensation loss costs in Maine by an average of 3.2 percent for policy year 2012. NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage in Maine. Loss costs are the portion of premium that cover benefits.
“This loss cost filing indicates that the frequency of claims is decreasing faster than any increase in medical and indemnity expenses for each claim,” Superintendent Cioppa commented. “This decrease can be attributed, in part, to the continuing focus on safety by Maine employers.”
Cioppa said the approved decrease in loss costs should reduce premiums in the insured market by about $6.1 million per year. The effective date for the proposed rates is January 1, 2012.
“Maine’s business community can take pride in the progress that’s been made to enhance safety and reduce workers’ compensation costs,” Governor Paul R. LePage commented. “Everyone benefits---employees, employers and customers—from safe workplaces and lower premiums.”
NCCI approved loss costs are available to insurers to reference when filing their workers’ compensation rates with the Bureau of Insurance. Maine currently has a competitive market for workers’ compensation insurance and each insurer sets its own rate level. Insurers may modify the NCCI loss costs and must select their own expense and profit factor in setting rates. The 3.2 percent reduction is an average. While some businesses will experience an increase, most employers will realize a decrease.
The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.
Last Updated: November 17, 2011 1:54 PM
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