Insurance carriers are pushing for reform in the wake of a sizeable increase in workers’ compensation rates in Florida.
The blow landed Tuesday, as the Florida Office of Insurance Regulation approved a 14.5% average premium hike on new and renewal policies, effective December 1. It marks a comedown from the 19.6% increase recommended by the NCCI, but both businesses and industry groups are far from satisfied.
“We continue to support the 2003 reforms to Florida’s workers’ compensation system that protected employees and controlled costs for employers prior to the rulings,” said Logan McFaddin, regional manager for the Property Casualty Insurers Association of America (PCI).
“We must work with Florida lawmakers on solid solutions to ensure we can return to a vibrant marketplace in Florida where injured workers can get the care they need, while at the same time, workers’ compensation costs do not hinder employers and employees. We need a workers’ compensation system in Florida that we can all rely on.”
Employers in the state are not pleased, however, maintaining that the new higher rates benefit insurance companies and trial lawyers – not workers.
“Putting job creators and injured workers first is the right thing to do to keep Florida’s workers’ compensation system working. Unfortunately, the Florida Supreme Court’s ruling is not about safety or protecting workers,” said Mark Wilson, president and CEO of the Florida Chamber of Commerce. “The effect of the Castellanos decision is to raise costs for no other reason than so plaintiff lawyers can raise fees.”
Mark Touby, president of Florida Workers’ Advocates, struck out at insurers directly.
“[OIR Commissioner David Altmaier] could have rejected the insurance industry’s secretive ploy for corporate welfare to line its own pockets, all while falsely blaming a workers’ compensation rate hike on two court rulings that don’t actually make rate change necessary,” Touby said.
“Insurance companies like to point blame at lawyers, but we agree with Florida’s business community that this unwarranted 14.5% increase in premiums will have a damaging impact on employers across the state.”
