Work Comp Rates — Two PIA Western Alliance States have the Highest Rates

While we keep seeing information about how badly workers’ compensation rates are going, and how often they drop rather than raise, the National Council on Compensation Insurance (NCCI) says 2023 was a very good year for the line.

The combined ratio for private work comp insurers hit 86 in 2023. That’s the seventh year in a row that the rate has been below 90.

As for premiums, they hit $43 billion in 2023 but it’s just 1% above the 2022 premium income. The voluntary market is doing very well but the residual market continues to decline. It fell from 6.1% in 2022 to 5% in 2023.

While that doesn’t seem like a lot, to give you a comparison, the residual market was 12.5% in 2003.

These are the highest workers' comp costs in the country based on the Workers' Compensation Index Rate. It is a biennial survey conducted by the Oregon Department of Consumer & Business Services' Information Division.

The PIA Western Alliance states of Hawaii and California rank second and third in highest work comp costs.

1. New Jersey

Cost per $100 of payroll: $2.44

2 Hawaii

Cost per $100 of payroll: $2.27

3. California

Cost per $100 of payroll: $2.26

4. New York

Cost per $100 of payroll: $2.15

5. Lousiana

Cost per $100 of payroll: $2.13

6. Vermont

Cost per $100 of payroll: $!.98

7. Wyoming

Cost per $100 of payroll: $1.86

8. Maine

Cost per $100 of payroll: $1.67

9. Wisconsin

Cost per $100 of payroll: $1.67

10. Connecticut

Cost per $100 of payroll: $1.64

Source link: PropertyCasualty360.com — https://bit.ly/3Lhh55K