Arizona workers' compensation insurance rates on average will increase 7.9 percent on Oct. 1 under recommendations from the National Council on Compensation Insurance.

The rates that were deemed acceptable Tuesday by the state insurance department reflect the increase in benefits that goes into effect Jan. 1, 2009, said NCCI State Relations Executive Dennis Kokulak. At that point the maximum monthly benefit increases from $3,000 to $3,600 per month.

Boca Raton, Fla.-based NCCI is the state's statistical agent and rating organization, and unless the department does not deem them acceptable, its rate recommendations become effective, Mr. Kokulak said.

He gave a briefing on the Arizona comp system Aug. 22 at a state advisory forum attended by representatives of the insurance industry and members of the state insurance department.

By sector the increases in rates would amount to 6.2 percent for manufacturing; 6.7 percent for contracting; 3.2 percent for office and clerical; 9.1 percent for goods and services; and 13.7 percent for miscellaneous categories.

Last year workers' compensation premium volume in Arizona totaled $399 million for private carriers and $496 million for the State Compensation Fund, according to the NCCI forum briefing material.

NCCI said the accident year combined ratio for the private insurers and SCF was projected as 119 for last year.

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Arizona Set For 7.9% Rise In Comp Rates

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