La. Comp Rates Falling With Loss Costs

Large decreases in costs for insurers have led to sharply falling rates for workers' compensation coverage in Louisiana, the state's insurance commissioner said today.

"This is positive news for our state's workers' compensation market," said state Insurance Commissioner Jim Donelon. "Our market is healthy and viable."

According to the Louisiana Department of Insurance, most carriers writing workers' comp coverage in the state formulate their rates based on the National Council on Compensation Insurance annual loss cost filing report.

The NCCI report showed that Louisiana had the nation's largest decrease in loss costs, at 15.8 percent, leading several companies to file for a rate decrease with the department. More filings continue to come in, and the department said it expected the trend to continue.

The total Louisiana workers' comp market is estimated at $1.03 billion, according to the department. Among those already seeking to lower their rates are 27 companies accounting for $230 million, or approximately 22.4 percent, of the market.

Among the companies seeking to lower their rates, through various subsidiaries, are Liberty Mutual, which is seeking a 22.1 percent rate decrease for its companies, and AIG, whose companies have filed a request to drop their rates by 15.1 percent. The Hartford sought a 10 percent rate decrease for its companies in Louisiana, and CNA companies filed for decreases between 5.3 percent and 17.5 percent.