Workers’ Comp Insurance Rates To Drop 10 Percent
Average rate decrease of 10.2% to provide significant savings for small businesses and policyholders across the state
Massachusetts small-business owners and policyholders will see substantial savings after a new settlement between the Attorney General’s Office, the Workers’ Compensation Rating and Inspection Bureau (WCRIB) and the State Rating Bureau was announced. The agreement will see a rate reduction of an average 10.2%, translating into a $130 million dollar rollback of rates for worker’s compensation insurance. According to the AG’s office, the new rates are set to take effect on July 1.
“Massachusetts policyholders will save over a hundred million dollars as a result of this settlement,” said AG Campbell said in an official statement. “By lowering workers’ compensation insurance rates, we can help better protect workers and ensure that small businesses can offer higher wages, better benefits and lower prices.”
Workers’ compensation insurance rates are typically established every two years during administrative rate hearings overseen by the Commissioner of Insurance with the Division of Insurance. The Attorney General’s Office actively participates in these hearings to ensure fair rates for policyholders.
Interestingly, this year’s case began earlier than the mandated two-year cycle, with the WCRIBMA”s request for a 4% statewide decrease in rates in its December 2022 rate filing. After successfully securing an order for an expedited review, the AG’s Office intervened, identifying flaws in the industry’s projections and arguing for a more significant reduction. Their efforts paid off, with the AG successfully arguing for a larger decrease.
