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MAINE BUREAU OF INSURANCE
34 State House Station
Augusta, Maine 04333-0034

Tel. (207) 624-8475 Fax (207) 624-8599 TDD (888)-577-6690

Maine Bureau of Insurance Reduces NCCI’s Request for a
Workers’ Compensation Rate Increase

December 13, 2005

FOR IMMEDIATE RELEASE

Contact: Alessandro A. Iuppa, Superintendent
Tel: 207-624-8491

Augusta, Maine: The Maine Bureau of Insurance today announced that it has modified NCCI’s (the National Council on Compensation Insurance) original request for an average 1.8% increase in workers’ compensation rates for policy year 2006 to 1.2%. NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage in Maine.

“After a review of the estimated claim costs made in the filing, the Bureau determined that an increase of 1.2% is more appropriate,” said Superintendent of Insurance Alessandro Iuppa. “Although on face value the change in the requested increase is relatively small, the reduction is expected to save employers approximately $1.6 million on policies issued or renewed in 2006,” stated Iuppa. “The actual increase or decrease in a particular employer’s premium however, will vary from the average depending on the specific industry classification.”

Though the frequency of lost time claims has continued to decrease since 2000, the average cost per case for both wage loss and medical benefits has increased which has offset claims savings.

Once approved by the Superintendent, NCCI advisory rates are available to insurers to reference when they file their workers’ compensation rates with the Bureau of Insurance. Company filed rates are subject to competitive market controls, but NCCI’s advisory rates can be disapproved if found to be excessive. The rates are effective January 1, 2006.

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.MaineInsuranceReg.org; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

 

 

Last Updated: May 24, 2011