What does $1 Billion Mean to the Florida Workers’ Compensation Insurance Marketplace?


Gulp.  Potentially, a great deal if one is on, or has been on, a large deductible or other type of loss sensitive program at present.

Of note is that Florida’s private workers’ compensation system was about $2.6B as of year end 2014 in total and we are looking to add a billion onto that… just in retrospective loss exposure.

Last year’s report on the Florida Workers’ Compensation System done each year by the Florida Senate.


“This cost will be borne by insurance companies, individual self-insured employers, and employers with deductible policies (due to growth in out-of-pocket costs, or in other words, the amount that the employer agreed to pay on losses up to the deductible threshold).”

NCCI  https://www.workcompcentral.com/fileupload/uploads/2016-08-04-022452FL%20NCCI%20Statement%20of%20Unfunded%20Liability.pdf

This announcement does nothing to impact the go-forward rate need still set at an aggregate 19.6% which is yet to be decided upon.  While some rate increase is anticipated to go into effect for all Florida policyholders regardless of their Anniversary Rating Date on 10.1.16, the exact amount is still not known   This analysis only looks at the impact of pre 10.1.16 losses.

It is good time to make sure you have your loss data in place and claims closed.


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