The New Hampshire Insurance Department has approved a 6.1 % average reduction in workers’ compensation loss costs in the voluntary market, effective Jan. 1, 2026. The assigned risk pool will see a decrease of 5.4 %, the department said.
Loss costs represent the portion of a policyholder’s premium allocated to claims, a key metric in calculating rates for the voluntary market. The department noted all carriers must adopt the new loss cost level, though adjustments are allowed based on each company’s expense structure.
This marks the 14th consecutive year of reductions in loss costs in the state, amounting to a cumulative drop of 66 %, according to regulators. Insurance Commissioner DJ Bettencourt (pictured above) said the trend reflects the resilience of the state’s insurance market and its emphasis on worker safety.
Deputy Insurance Commissioner Keith Nyhan said the decline supports a premium system that serves employers and injured workers, emphasizing system reliability and fairness.
Chief property and casualty actuary Christian Citarella added that reductions in medical expenses have played a role, noting trends indicate safer workplaces and quicker recovery.
As part of this year’s filing, the department cited use of the third decimal in expressing loss cost figures, allowing more precise pricing and tighter alignment between risk and premium.
Nationwide, workers’ compensation remains a top-performing segment in property & casualty insurance. In 2024, it maintained a combined ratio of 86 %, well below the 100 % breakeven threshold, and the five-year average combined ratio from 2020 through 2024 stood at 89 %, underscoring industry underwriting strength.
More broadly, the line benefits from steady reductions in loss frequency and favorable reserve development. A report by AM Best found that since 2015, workers’ compensation consistently outperformed other commercial and personal lines in the P&C sector, supported by reserve releases and improved claim dynamics.
At the same time, rising wages and employment are driving premium growth across the workers’ compensation market, even amid rate reductions. Pay increases and expanded payroll bases have lifted net premiums above pre‑pandemic levels, particularly in wage‑sensitive industries.
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