Florida's insurance commissioner has disapproved a filing calling for a 13.3 percent statewide average rate decrease in workers' compensation insurance and has asked for a 15.7 percent rate reduction.

Commissioner Kevin McCarty cited disagreements with the methodology the National Council on Compensation Insurance used to project losses and with the trend factors used in the filing. Trend factors incorporate changes in wages, paid losses and claims frequency.

When NCCI said it would reduce rates, the state attributed the plan to a significant drop in claims frequency and a reduction in the cost of claims.

Last year, the NCCI proposed dropping rates 7.2 percent and the Office of Insurance Regulation ultimately approved a 13.5 percent drop. The year before, the proposal was a 2.3 percent decline and the OIR approved a 5.1 percent reduction.

_______________________________________________________________ 

All contents of this site © American City Business Journals Inc. All rights reserved.