Florida Workers' Compensation Rates - So Now What?
NCCI has requested a dramatic 19.6% workers' compensation rate
As has been reported, the NCCI has requested a dramatic 19.6% workers' compensation rate increase from the State of Florida to cover necessary pricing as a result of 2 recent court rulings and the adoption of a new Florida fee schedule.
So what now?
The State of Florida has the final say on workers compensation rates. In Florida, all carriers must use the same base manual rates as approved by the State(usually on a per annum basis). This is unlike other states where carriers can file for their own loss cost multipliers (LCM's), and within the confines of what a given State will allow, therefore set their own rates. LCM's are multiplied by expected loss costs in a given state to get a final base rate. The burden to make sure base rates are adequate therefore fundamentally shifts from the insurers to the Florida Office of Insurance Regulation with the guidance and recommendation of the NCCI.While it is highly unlikely, the State is well within their rights to adopt no rate increase and then it is up to the carriers that write business in the State to decide if they can make money here or not.The OIR has scheduled a town hall hearing in Tallahassee on August 16'th, 2016 at 9:00am. After this meeting, there is no specific time frame whereby the OIR needs to accept revise or reject the NCCI recommendation. It is my guess that the State will move swiftly as the effective date of the proposed rate filing is 10.1 (which the OIR could also revise as deemed fit).So for now, the numbers and impact will be argued as to the need of this sharp increase. Good chance the State could get a "second opinion" in some manner to that of the NCCI as they have done in the past. Many legislators will be rallied to help reduce the heavy impact this type of a rate hike will have on small business in Florida.Politics and mathematics.More as we get it - Hope you had a Happy 4'th...-PRH
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The PEO Compass is a friendly convergence of professionals and friends in the PEO industry sharing insights, ideas and intelligence to make us all better.All writers specialize in Professional Employer Organization (PEO) business services such as Workers Compensation, Mergers & Acquisitions, Data Management, Employment Practices Liability (EPLI), Cyber Liability Insurance, Health Insurance, Occupational Accident Insurance, Business Insurance, Client Company, Casualty Insurance, Disability Insurance and more.To contact a PEO expert, please visit Libertate Insurance Services, LLC and RiskMD.
Join the Conversation on Linkedin | About PEO Compass
The PEO Compass is a friendly convergence of professionals and friends in the PEO industry sharing insights, ideas and intelligence to make us all better.All writers specialize in Professional Employer Organization (PEO) business services such as Workers Compensation, Mergers & Acquisitions, Data Management, Employment Practices Liability (EPLI), Cyber Liability Insurance, Health Insurance, Occupational Accident Insurance, Business Insurance, Client Company, Casualty Insurance, Disability Insurance and more.To contact a PEO expert, please visit Libertate Insurance Services, LLC and RiskMD.