- Associated Press - Tuesday, December 16, 2014

BATON ROUGE, La. (AP) - Fewer workplace injuries and less severe ones will result in lower Louisiana worker’s compensation insurance rates in 2015, the second year in a row and the seventh time in 10 years that rates have fallen.

The Department of Insurance reports the 2.4 percent decrease in worker’s compensation loss costs, or claim expenses, will be effective May 1.

The National Council on Compensation Insurance, a national organization that analyzes worker’s compensation data and files loss costs or rates in 35 states, asked for the rate cut.

The Insurance Department says most worker’s compensation carriers in Louisiana use the NCCI annual loss cost filing to formulate their insurance rates. This loss cost reduction marks a cumulative drop of 37 percent since 2006 and a 56 percent drop since 1995.

“Companies today are paying half as much for the same coverage as they were 20 years ago and about one-third as much as they were paying just 10 years ago,” said Insurance Commissioner Jim Donelon. Businesses are seeking fewer and less severe workplace injuries claims.

In 2014, The Advocate reports (https://bit.ly/1xozH9C ) Donelon approved a 5.1 percent decrease in worker’s comp loss costs.

Although Louisiana Workers Compensation Corp. doesn’t base its rates on NCCI data, Kristin Wall, president and chief executive officer, said fewer people are being injured at the workplace. LWCC is also reducing rates - 7.7 percent on Jan. 1.

Last week, the Occupational Safety and Health Administration reported that Louisiana had the second-best rate of work-related illness and injury in the country in 2013, and well below the national average.

“I think it’s really about the number of claims because the cost of claims continues to increase and is quite high,” Wall said.


Information from: The Advocate, https://theadvocate.com

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide