Capital Soup

Florida News Straight From the Source

You are here: Home / Archives for workers’ comp

workers' comp

CFO Jimmy Patronis: Reduction of Workers’ Comp Rates Could Save Florida Businesses More Than $79 Million

Posted on

Florida Chief Financial Officer (CFO) Jimmy Patronis today released the following statement on the Office of Insurance Regulation’s (OIR) approval of a 1.8 percent decrease in workers’ compensation insurance rates for Florida businesses. The National Council on Compensation Insurance (NCCI) submitted the rate reduction request because of the federal Tax Cuts and Jobs Act of 2017.

“My office estimates that the 1.8 percent decrease could be a savings of $79.5 million and is a good move that will help further reduce cost burdens on Florida businesses. The estimated $79.5 million is a significant savings for our business community who support local economies, employ our neighbors, and give back to our communities. We must continue to do all we can to support and fuel Florida businesses, the backbone of our economy.”

OIR Approves Workers’ Comp Insurance Rate Decrease

Posted on

The Florida Office of Insurance Regulation announced today that it has approved a rate decrease for workers’ compensation insurance in Florida. The 1.8% decrease was filed by the National Council on Compensation Insurance (NCCI) in a law-only filing resulting from the effects of the Federal Tax Cuts and Jobs Act.

Florida Chief Financial Officer Jimmy Patronis said, “Reducing insurance costs and financial burdens is great news for our business community. Businesses in Florida support our local communities, create jobs, and help our state’s economy. This rate reduction is a much needed insurance cost savings for Florida businesses.”

Florida Department of Agriculture and Consumer Services Commissioner Adam H. Putnam said, “Reducing the cost of business spurs job growth, and this rate reduction is exactly what Florida needs to continue to create the business climate that will help our economy thrive.”

Florida Insurance Commissioner David Altmaier said, “NCCI has demonstrated through its rate filing that this decrease is an actuarially-sound response to the savings workers’ compensation insurers have realized as a result of recent federal legislation. The data indicates that passing the savings along to businesses through a rate decrease is an appropriate response at this time.”

The overall rate level change is a 1.8% decrease due to a change in the Profit and Contingency (P&C) Factor to 0.5% from 1.85%. NCCI’s analysis to determine the revised P&C reflects provisions from the recently-passed Tax Cuts and Jobs Act, including top corporate tax rate decreases, changes to reserve discount factors, and other factors. This applies to both new and renewal workers’ compensation insurance policies effective in Florida as of June 1, 2018.