For the eighth consecutive year, the Connecticut Insurance Department approves a decrease in costs. There was a decrease of 14.1% to workers’ compensation pure premium lost cost with an 8.2% reduction in assigned risk rates. The new filing lowers individual business premiums effective January 1, 2022, in Torrington, Connecticut, and surrounding areas.
Connecticut businesses have had savings of over $140 million in workers’ compensation premiums since 2019. The entire workers’ compensation book is $800 million for the state. The decline of workers’ compensation allows employers to invest more money into their employees and company. More money to put into employees and the business boosts the economy. Money in businesses helps employees by making safer workspaces. The reduction in the loss costs reflects the decrease in workplace injury claims. Over the eight years, there’ve been over $300 million in premium reductions.
Insurer’s actual or expected costs
An insurer’s actual or expected costs include claims adjustment and indemnity payment, but not the overhead costs. The pure premium and loss costs reflect the insurer’s expected or actual costs. The new filing that goes into effect January 1, 2022, allows voluntary market insurers to review their expenses and loss cost experience. They’ll submit individual rate filings to the Connecticut Insurance Department for approval. Any workers’ compensation claims from COVID-19 don’t count because they aren’t predictive of the future. The voluntary market is competitive, and loss costs will reduce by 14.1%. Most employers buy insurance in the voluntary market, but some businesses use the assigned risk market. The assigned risk market loss costs will reduce by 8.2%.
The Connecticut Insurance Department lowered workers’ compensation lost costs for the eighth year in a row. Insurance companies within the voluntary market will have reduced loss costs by 14.1%. Insurance companies within the assigned risk rates market will have reduced loss costs by 8.2%. Employers can put the extra money into their businesses and employees. The new filing goes into effect on January 1, 2022.