Last Friday, the Florida Chamber of Commerce met with the National Council on Compensation Insurance (NCCI) to review the proposed 2025 workers’ compensation rates. NCCI, which files rate recommendations on behalf of Florida insurers, has proposed an average rate decrease of one percent. If approved, this decrease will contribute to a cumulative reduction of 78 percent since the reforms the Florida Chamber championed in 2003.
Factors influencing this year’s rate filing include a reduction in both the frequency and severity of claims. This improvement is attributed to employers’ ongoing commitment to enhancing workplace safety and advancements in technology, which have collectively reduced workplace injuries and facilitated quicker return-to-work processes for employees. Conversely, the primary driver in the workers’ compensation rate decrease not being more significant stems from the passage of SB 362 during the 2024 legislative session, which implemented higher reimbursement allowances for physician services. Despite this upward pressure, the decline in claims and additional factors offset the impact of SB 362, leading to a modest overall rate decrease of one percent.
The Office of Insurance Regulation (OIR) is expected to hold a public hearing in mid-September and will approve or request a modification of the rate request sometime in October or early November. The rates, once approved by OIR, will become effective for both new policies and policy renewals starting January 1, 2025.