Commissioner Barbara D. Richardson approved two filings from the National Council on Compensation Insurance (NCCI) which may help Nevada employers see lower premiums as a result of decreases in workers' compensation voluntary insurance loss-costs and assigned-risk market rates, effective March 1, 2017.
One filing aims for an average decrease of 10.7 percent for Nevada workers' compensation voluntary insurance loss costs; another aims for an average decrease of 10.5 percent for workers' compensation insurance assigned-risk rates.
This is the largest decrease in loss costs since NCCI's 2004 filing when loss costs decreased by an average of 12.3 percent. The decrease in assigned-risk rates is the largest in Nevada history since workers' compensation insurance was privatized in 1999.
Workplace safety improvements reduce injuries
The majority of the decrease in loss costs is due to combined favorable changes in loss experience and favorable changes in loss development. A primary contributory factor for this decrease is attributable to employers making workplace safety improvements, which helps reduce the number of injured workers, thereby leading to fewer workers' compensation claims filed. The lower number of claims helps reduce the cost of workers' compensation insurance in Nevada.
The reduction in assigned-risk rates takes into account the factors affecting the voluntary market, as well as information specific to the assigned-risk market. The assigned-risk market rates will experience a slightly milder overall decrease than the voluntary-market loss costs, because of an approximate 0.2 percent projected increase in assigned-risk servicing expenses – but a substantial 10.5 percent overall decrease will still result.
The Division encourages employers to comparison shop for the best rate. Nevada's market remains competitive, so it pays to review all options.
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