Louisiana Insurance Commissioner Jim Donelon reported this week that workers’ compensation rates in the state will go down by 2.7% in 2016. Rates also declined last year.
This week’s announcement marks a continuation of a trend that has been running strong for years, with rates in the state down 38% since 2006 and 51% since 1996.
The number of companies writing policies in the state is going up even as rates go down. In 2007, 197 companies were writing in Louisiana and today that number is 235, an increase of 19%, said Donelon who credited the enhanced competition with some of the rate reduction.
Accident rates are also down, with fatal accidents declining from 7.3 per 100,000 workers in 2008 to 6.3 in 2013.
The Department said total premiums are expected to surpass $990 million this year.
Rates are based on reviews conducted by the National Council on Compensation Insurance, and will be reviewed by Department actuaries prior to implementation in May 2016.
