Maine's Insurance Superintendent Approves 12% Average Decrease in Workers' Compensation Loss Costs

February 20, 2018


Contact: Eric A. Cioppa, Acting Superintendent


Augusta -

Superintendent Eric Cioppa announced approval of the National Council on Compensation Insurance, Inc.'s (NCCI) 2018 loss costs for Maine, filed earlier this year, which proposed an average loss cost decrease of 12%. The new NCCI loss costs go into effect for new and renewing policies as of April 1, 2018.

"Maine employers efforts to improve workplace safety, return injured workers to their jobs in a timely manner, and control medical costs continues to pay off," Cioppa stated. This most recent decrease should result in lower workers compensation premiums on average across all industry groups.

The Superintendent noted that recently filed NCCI loss costs represent a cumulative decrease of 59.5% since the 1992 workers compensation reform, and that if all insurers fully adopt the decrease, Maine businesses could save an estimated $27 million in the year following implementation.

Loss costs are based on previous and projected losses and benefit payments. NCCI is the advisory rating organization for insurance companies that offer workers compensation coverage in Maine. NCCI-approved loss costs are available to insurers to reference when filing their workers compensation rates with the Bureau of Insurance.

The 12% decrease is an average loss costs change, which ranges from -10.4% to -15.1% depending on the industry group. This is an average decrease so some individual businesses will experience increases while the majority will experience decreases. The loss cost decrease is also only a recommended decrease, and it is up to the individual insurers to decide whether to accept the proposed change in loss costs.

Maine 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 Bureau of Insurance is part of the Department of Professional and Financial Regulation, which encourages sound ethical business practices through regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine.

Consumers with questions about insurance matters can obtain information and assistance from the Bureau by visiting the agencys website (, calling toll-free (in Maine) 1-800-300-5000 or TTY Maine Relay 711, or e-mailing

Last Updated: October 27, 2020 12:47 PM