Slight Increase Proposed For Iowa Workers' Comp Rates

Citing an uptick in experience, trend and benefits, the National Council on Compensation Insurance proposed an average 2.3% workers' compensation rate increase for Iowa.

The average effect on individual industry groups varies from a dip of 0.2% (manufacturing) to a surge of 8% (goods and services), according to NCCI data. Some farm enterprises will see a raise in the minimum premium from $300 to $350.

The proposed rates would be effective Jan. 1, 2010. The filing is currently under review by the Division. Any affected company can contact the Iowa Insurance Division by Sept. 8 to request a hearing.

More than half of U.S. states have designated NCCI as a licensed rating and statistical organization. NCCI provides workers' compensation insurance and employee injury data and statistics.

The Work Loss Data Institute, which focuses on workplace health and productivity, recently named Iowa as having the nation's most effective workers' compensation system. Iowa along with Minnesota, received the institute's highest rating.

The institute cited seven years of U.S. Occupational Safety and Health Administration data, through 2006. Its 2009 State Report Cards for Workers' Compensation, issued in July, rates states in five categories: incidence rates, cases missing work, median disability durations, delayed recovery rate and the key condition of lower back strain.

Iowa Workers' Compensation Commissioner Chris Godfrey cited strong working relationships between employer and employee organizations as a strong factor. "We want everybody to play by the rules and make it fair for everybody to compete," he said.

The top five writers of workers' compensation insurance in Iowa in 2008, according to BestLink based on direct premiums written, were: Liberty Mutual Insurance Cos., with 9.7%; Accident Fund Group, 8.9%; EMC Insurance Cos., 8.8%; Travelers Group, 6.8%; and Nationwide Group, 6.1%.