If approved, the rate decrease would be the seventh consecutive decline since the Legislature passed sweeping reforms to the state's workers' comp system in 2003. The cumulative overall statewide average rate decrease since 2003 would total 63.2 percent.
Before the 2003 legislative reforms were passed, Florida ranked as the first or second state with the highest workers’ comp rates in the country. Last year, studies showed that Florida had dropped to the 28th highest. However, updating those studies with the rate changes the Office approved earlier this year, plus this NCCI filing, Florida’s ranking could now be among the 10 lowest states in the country.
NCCI, which produces and files rates for insurers in many states, noted the rate decline was primarily due to a significant reduction in claims frequency although there are signs the pace of improvement has moderated.
The Office will schedule a rate hearing in October, and the rate change would be effective for new and renewal business as of Jan. 1, 2010.