New Hampshire To Reduce Workers’ Compensation Rates in 2025

This will be the 13th Annual Rate Reduction for the state

The New Hampshire Insurance Department (NHID) announces today that it has approved a rate proposal filed by the National Council on Compensation Insurance (NCCI) that will reduce voluntary loss costs by 5.6% on average. 

“We’re seeing real benefits for businesses and workers alike as the cost of workers’ compensation continues to drop,” said New Hampshire Insurance Commissioner DJ Bettencourt. “The workers’ compensation market in New Hampshire remains robust, offering business owners a wide array of options when selecting coverage. As employers and employees work together to prioritize workplace safety, everyone across the Granite State benefits from these lower costs.” 

Consumers continue to benefit from state reforms aimed at reducing costs and premiums, which have been implemented over the past several years. These reforms, advocated for by the NHID and approved by the legislature, have not only lowered costs but also ensured that injured workers have access to quality care.

The voluntary market has now experienced loss cost decreases for 13 consecutive years, with a cumulative reduction exceeding 65% over this period. Loss costs represent the portion of an employer’s insurance premium dedicated to covering claims costs for work-related injuries and are a key factor in determining rates and premiums in the voluntary market. All insurers writing voluntary workers’ compensation in New Hampshire must adopt the new loss costs, with allowances for adjustments based on their specific company expenses.

“Consistently lower loss costs are a strong indicator of safer work environments and faster recovery times for injured workers,” said Christian Citarella, Chief Property and Casualty Actuary for the NHID. “The trend of declining workers’ compensation medical expenses, combined with the proactive safety measures embraced by employers and employees alike, continues to drive these favorable outcomes.”

The NCCI, a licensed advisory organization and statistical agent, collects data, analyzes industry trends, and prepares workers’ compensation rate filings for New Hampshire and many other states. The new rates will apply to policies effective on or after January 1, 2025.