Massachusetts Lowering Workers Comp Rates To Attract Business

“A deal” to cut back rates for workers’ compensation insurers is reported out of Massachusetts Attorney General Martha Coakley’s office.

The agreement reached with the State Rating Bureau of the Division of Insurance means insurance companies who had been looking for an average rate increase of 4.5% will see a reduction in their current rates by 2.4% beginning in September.

As a result of the deal, Massachusetts businesses will reportedly save around $75 million, according to the Attorney General’s Office.

“By lowering the cost of workers’ compensation insurance, we can continue to promote job growth in Massachusetts by attracting new businesses and allowing current businesses to grow. This settlement protects insurance customers and ensures that they do not overpay for workers compensation insurance,” Coakley commented. The average increase expected of 4.5% would have cost employers more than $40 million in extra premium payments, Coakley said.

According to Paul Meagher, president of the Workers’ Compensation Rating and Inspection Bureau of Massachusetts, a private, non-profit association of insurers, filing workers’ comp rates on behalf of member insurers with the Division of Insurance, said “In today’s uncertain economic climate, maintaining a healthy voluntary market for workers’ compensation insurance will likely be a challenge given the continuing increase in claims severity and low expected industry investment returns. (workersxzcompxzkit)

Along with the rate decrease the deal necessitates workers’ comp insurers to undergo another rate review in 2011, so the Attorney General and the State Rating Bureau may seek further rate reductions next year as appropriate.

The settlement requires final approval from the state commissioner of insurance.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ ReduceYourWorkersComp.com or 860-553-6604.

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