Nevada Insurance Commissioner OKs largest workers’ compensation loss-cost and rate decrease since 2010
Submitted by editor on Mon, 02/29/2016 - 11:19am
CARSON CITY — There is good news for Nevada employers as Acting Commissioner Amy L. Parks approved a filing from the National Council on Compensation Insurance 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’ compensation insurance assigned-risk rates was also approved. The filing will take effect on March 1, 2016. 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’ compensation claims will not grow over time by as large a proportion as previously anticipated. Both indemnity and medical loss components of workers’ compensation, 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 table above illustrates by industry group the proposed average changes.
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-....
While most employers are able to purchase workers’ compensation 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. Nevada’s reasonable workers’ compensation rates are among many reasons why businesses should consider establishing themselves in Nevada.
For more information on the benefits of doing business in Nevada, visit the Nevada Commission on Economic Development’s website: www.expand2nevada.com.
If you have additional questions about workers’ compensation insurance, or if you would like to learn more about health, home, life, and auto insurance options, and tips for choosing the coverage that is right for you and your family, contact the Nevada Division of Insurance at http://doi.nv.gov.
About the Nevada Division of Insurance
The State of Nevada Division of Insurance, a Division of the Nevada Department of Business and Industry, protects the rights of Nevada consumers and regulates Nevada’s $11.9 billion insurance industry. The Division of Insurance has offices in Carson City and Las Vegas. In 2015, the Division investigated more than 3,200 consumer complaints and recovered nearly $5 million on behalf of consumers. For more information about the Division of Insurance, visit DOI.NV.GOV or download the Division’s smartphone app NDOI Connect today in the Apple App Store and Google Play.
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