Maine's chief insurance regulator said the state's advisory rating organization for insurers has filed a request to decrease workers' compensation rates by an average of 2.2 percent.
Acting Superintendent of Insurance Eric A. Cioppa said the filing from the National Council on Compensation Insurance, to decrease workers' compensation loss costs, if approved, will reduce premiums in the insured market by about $5.5million.
The requested effective date for the proposed rates is Jan. 1, 2008. Loss costs are the portion of premium that covers the cost of benefits.
Mr. Cioppa said in a statement that the filing indicates the frequency of claims is decreasing faster than any increase in medical and indemnity costs for each claim and "this decrease in part can be attributed to the continued safety efforts of Maine employers."
He noted that the 2.2 percent reduction is an average, and while many employers will realize a reduction, some businesses will experience a rate increase.
NCCI-approved loss costs are available to insurers to reference when filing their workers' compensation rates with the Bureau of Insurance.
Maine currently has a competitive market for workers' compensation insurance and each insurer will set its own rate level. Insurers may modify the NCCI loss costs and must select their own expense and profit factor in setting rates.
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