Maine’s Bureau of Insurance Approves 4.3% Decrease in Workers’ Compensation Loss Costs, with approximately $9.5 Million in Expected Savings to Help Businesses

March 31, 2017

 

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Augusta -

Superintendent Eric Cioppa announced that the Bureau of Insurance has approved the National Council on Compensation Insurance, Inc.’s (NCCI) 2017 loss cost for Maine, filed earlier this year, which proposed a premium decrease of 4.3%. The new NCCI rates go into effect for new and renewing policies as of April 1, 2017.

“This decrease is expected to save Maine businesses more than $9.5 million, and result in a cumulative decrease of 53.6% since the 1992 workers’ compensation reform,” Superintendent Cioppa said. “These savings are the result of successful efforts by Maine employers and employees to improve safety in the workplace, return injured workers to employment as soon as possible, and control medical costs.”

Loss costs are based on previous and projected losses and benefit payments. “This most recent decrease in loss cost will result in lower Workers’ Compensation premiums across all industries,” Cioppa stated.

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.

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.

Last Updated: May 2, 2017 2:56 PM