Idaho approves workers’ comp rate cut for 2025
Idaho approves workers’ comp rate cut for 2025 | Insurance Business America
Workers Comp
Idaho approves workers’ comp rate cut for 2025
State’s sector sees lower premiums amid declining claims frequency
Workers Comp
By
Kenneth Araullo
The Idaho Department of Insurance has approved a 6.7% reduction in workers’ compensation rates, set to take effect on Jan. 1. This marks the eighth
consecutive year of declining rates for the state’s workers’ comp sector, according to the department.
Dean L Cameron (pictured above), director of the Idaho Department of Insurance, noted that this reduction continues a trend.
“This is another significant decrease to workers’ compensation rates. Rates have been on a downward trend for 10 out of the past 11 years,” Cameron said in a report from AM Best.
The National Council on Compensation Insurance (NCCI) also recommended a 10% reduction in Idaho’s assigned risk market surcharge, suggesting a decrease from 60% to 50%. The Department of Insurance did not confirm if this reduction has been approved.
NCCI’s filing attributed the improved workers’ compensation environment in Idaho to a reduction in claims frequency, which aligns with a nationwide trend. The decline in claims has been attributed to increased emphasis on worker safety and the introduction of technology aimed at reducing workplace injuries.
Several other states, including West Virginia, Florida, Massachusetts, and California, are also seeing decreases in workers’ comp rates. West Virginia Insurance Commissioner Allen McVey noted that rising wages have contributed to rate reductions, as workers’ compensation premiums are tied to wage levels.
As wages grow and claims decline, there is room for premium rates to decrease, McVey said.
In 2023, the US workers’ compensation sector reported a combined ratio of 88.7, a slight improvement over the 10-year average of 91.5, according to another report.
The five largest writers of workers’ compensation insurance in Idaho in 2023, based on direct premiums written, were the Idaho State Insurance Fund with 49.72%, WCF Insurance Group with 8.06%, Zurich Insurance US PC Group with 4.88%, Travelers Group with 4%, and AmTrust Group with 3.85%.
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