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Maine.gov > PFR Home > Insurance Regulation > All Press Releases > Proposed 2.2% Average Decrease in Workers' Compensation Loss Costs
Augusta, Maine -
Acting Superintendent of Insurance Eric A. Cioppa announced that the National Council on Compensation Insurance (NCCI) has filed a request to decrease workers’ compensation loss costs for policy year 2008 by an average of 2.2%. 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 the cost of benefits. The filing is subject to the approval of the Bureau of Insurance.
“This loss cost filing indicates that the frequency of claims is decreasing faster than any increase in medical and indemnity costs for each claim. This decrease in part can be attributed to the continued safety efforts of Maine employers,” Acting Superintendent Cioppa stated.
The 2.2% reduction is an average. Although many employers will realize a reduction, some businesses will experience a rate increase.
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 will set its own rate level. Insurers may modify the NCCI loss costs and must select their own expense and profit factor in setting rates.
If approved, the loss costs will reduce premiums in the insured market by about $5.5million. The requested effective date for the proposed rates is January 1, 2008.
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: April 7, 2009 2:38 PM
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