Louisiana Workers' Comp Rates diving for the third consecuti

 

Wednesday, Mar 25,2009, 5:49:48 PM   Click:

(BestWire Services Via Acquire Media NewsEdge) Workers' compensation in Louisiana, insurance rates are set for double-digit declines, the third consecutive year of decline in the state, due to a continued decline in demand frequency.

Based on data from the National insurance rates drop by an average of 17.4% from 12.8% for the manufacturing sector to 29.9% for the markets, said Dennis Kokulak, l state relations executive for NCCI. Further reductions are planned by 13.1% for office / clerical and 17.4% for each.

Most of the workers? comp carriers in Louisiana use the NCCI loss cost filing report to determine their insurance rates, according to the state department of insurance. The ministry recently approved the 17.4% decline in the costs of the loss by NCCI. Companies submitting applications now have new rates in September 2009 and implement the lowest rate of approximately 45 days after approval, the ministry said.


Prices fell on average by 8.6% in 2008 after a plunge of 15.8% in 2007. The ministry estimates the total workers in Louisiana? compensation market of $ 1 billion in premiums.

"People are hurt at work less often in this country and what is more pronounced in Louisiana than in most states," said Kokulak.

"Our market continues to show signs of improvement, particularly in the area of improving the safety of workers," Insurance Commissioner Jim Donelon said in a statement. "Improving the safety of workers led a decrease in the number of accidents at work in most classes of employment, a trend we have seen in recent years and the first result of these recent rate reductions. "In 2007, the top five writers of workers' compensation insurance in Louisiana, according to AM Best Co. state / line data, were: Louisiana Workers' Compensation Corp., with 28.0%, American International Group, 16.3%, Liberty Mutual Insurance Cos., 11.8%; LUBA Casualty Insurance Co., 7.8% and Zurich Financial Services NA Group 6.6%.

(By Sean P. Carr, senior editor, BestWeek: Sean.Carr @ ambest.com) Copyright? 2009 h Best Company, Inc.