There is good news for Nevada employers as Acting Commissioner Amy Parks recently approved a filing from the National Council on Compensation Insurance (NCCI) for an average decrease of 5.5 percent for Nevada workers compensation voluntary insurance loss costs.
An average decrease of 4.2 percent for workers comp insurance assigned-risk rates was also approved. The filing took effect on March 1. This decrease in loss costs is the largest since NCCI’s 2010 filing when loss costs decreased by an average of 7.6 percent.
The majority of the decrease in loss costs is due to combined favorable changes in loss experience and favorable changes in loss development. This suggests that the amount of reported workers comp claims will not grow over time by as large a proportion as previously anticipated. Both indemnity and medical loss components of workers comp, as analyzed by NCCI in its recently approved filing, showed improved experience and favorable loss development.
The reduction in assigned-risk rates takes into account the factors affecting the voluntary market, as well as information specific to the assigned-risk market. In addition to the average decrease of 4.2 percent for the assigned-risk market, NCCI also reduced its assigned-risk expense constant from $240 to $160. This change would tend to benefit smaller risks in the assigned-risk market and is thus a change that is favorable to small-business development in Nevada.
The approved loss costs and rates can be found on the Nevada Division of Insurance website on the following page: http://doi.nv.gov/Insurers/Property-Casualty/Filing-Information/Workers-Compensation/.
While most employers are able to purchase workers comp insurance in the voluntary market, those who find their businesses difficult to insure due to extraordinary losses in the past or unique and unusual risks, can purchase the required insurance in the assigned-risk market.
The Division encourages employers to comparison shop for the best rate. Nevada’s market remains competitive, so it pays to review all options.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: [email protected].
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