Connecticut businesses in line for insurance break
Many Connecticut businesses are in line for major savings on what they shell out annually for workers compensation insurance — a required cost of doing business — with carriers requesting state approval to cut a key rate calculation 16.8 percent next year on average.
The proposed rate schedule by the National Council on Compensation Insurance is subject to approval of the Connecticut Insurance Department, with NCCI representing workers compensation insurance underwriters.
It would mark a fifth straight year of declining workers compensation rates in Connecticut, with carriers getting approval last year for a 14 percent reduction in voluntary loss costs that capture the expenses carriers pay out in the form of claims. The voluntary loss cost formula excludes overhead costs and profit targets, and any offsetting investment income.
Underwriters are asking this year for even larger cuts in an insurance pool maintained for businesses that represent increased risk for worker injuries, requesting a 19.7 percent reduction on average after receiving approval last year for a 12.6 percent cut.
Alex.Soule@scni.com; 203-842-2545; @casoulman