North Carolina’s Workers’ Compensation Rates Cut
Posted on Nov 02, 2008
According to WRAL.com, North Carolina Workers Comp rates will be cut next year. The North Carolina Rate Bureau, which represents all 150 of the state's workers compensation insurance companies, filed a request that decreases rates both in the voluntary market and the assigned risk market. According to the News & Observer out of Raleigh, NC, this is the first decline in workers comp insurance rates since 2004.
North Carolina Insurance Commissioner Jim Long approved the request, which lowers the voluntary market rate by 4.4 percent and the assigned risk markets by 3.8 percent. Officials are predicting that the decreases will save businesses $65.5 million in the first year after the new rates go into effect on April 1, 2009. This statistic, however, does not include self-insured companies.
The Insurance Commissioner does not always approve NC Rate Bureau requests. For example, last year the industry asked for a 5.9 percent hike in workers comp policy rates, but was rejected. Instead, Jim Long agreed on a 1.6 percent increase.
Officials also said that the average business spends 2.17 percent of payroll to workers comp insurance companies. Last year, state employers paid $1.5 billion in workers comp premiums.