Florida OIR Approves 4.9% Comp Rate Cut; NCCI Drops Cat Fund Idea

by Gulfshore Insurance

Florida Insurance Commissioner has approved a 4.9% average decrease in workers’ compensation rates for 2022, as recommended by the National Council on Compensation Insurance. The decrease is the sixth straight for Florida. Last year, the NCCI proposed a 5.7% cut but the Florida Office of Insurance Regulation demanded more and ultimately approved a 6.6% decrease for 2021.

Rates jumped in 2017, after a landmark court ruling struck down statutory limits on attorneys’ fees. But loss costs and rates have fallen every year since then.

The latest rate decrease will take effect Jan. 1 for new and renewing policies. While changes in experience, trends and medical and indemnity benefits have declined almost 7% in recent years, loss adjustment expense, or the costs associated with handling claims, increased slightly.

The NCCI’s recommendation, filed earlier this year, did not include data or adjustments needed for the impact that the COVID-19 pandemic may have had on Florida comp insurers. Instead, the rating organization proposed a separate catastrophe fund to help manage nationwide, non-terrorism events that result in workers’ compensation losses of more than $50 million. The fund would have required extra charges to be paid by Florida employers.

The OIR announced that the NCCI has withdrawn its catastrophe provision recommendation. A Nov. 11 letter from NCCI said the provision “will be resubmitted at a future date as and when appropriate.”

Click here to download the 2022 rates.

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.