The National Council on Compensation Insurance (NCCI) has filed proposed workers' compensation rates for 2025, citing a reduction in both the frequency and severity of claims as key factors influencing this year's rate filing. This improvement is attributed to employers’ ongoing commitment to enhancing workplace safety and advancements in technology, which have collectively reduced workplace injuries and facilitated quicker return-to-work processes for employees.
Conversely, the primary reason the workers’ compensation rate decrease is not more significant stems from the passage of SB 362 during the 2024 legislative session. This legislation implemented higher reimbursement allowances for physician services. Despite this upward pressure, the decline in claims and additional factors offset the impact of SB 362, leading to a modest overall rate decrease of one percent.
The Office of Insurance Regulation (OIR) is expected to hold a public hearing in mid-September and will approve or request a modification of the rate request sometime in October or early November. The rates, once approved by OIR, will become effective for both new policies and policy renewals starting January 1, 2025.