The Tennessee Department of Commerce and Insurance (TDCI) has announced that workers’ compensation insurance premiums will continue to fall for most businesses in 2023, with rates dropping for the 10th year in a row.
TDCI Commissioner Carter Lawrence signed the order approving the decline on December 14, authorizing a 10.2% overall loss cost decrease for the voluntary market on new and renewal policies beginning March 1 of the coming year.
“Tennessee’s workforce will benefit from these loss cost reductions because they are the result of decreases in lost-time claim frequency and more stable claims costs,” said Lawrence.
Since enacting workers’ comp system reforms were enacted in 2014, Tennessee’s loss cost reductions have allowed employers to enjoy substantial savings, according to TDCI. Additionally, Tennessee employers have reported fewer cases of significant workplace injuries through the years, contributing to the decline in loss costs.
“The continued insurance premium decrease benefits Tennessee’s business climate while keeping our economy strong,” said Tennessee governor Bill Lee. “By lowering premiums, business owners have the opportunity to reinvest in their company and better serve their employees, and I thank the Department of Commerce and Insurance for its work to serve Tennesseans.”
Insurance carriers providing workers comp in the state combine the National Council on Compensation Insurance loss cost filings with company experience and expenses to establish full insurance rates.
A copy of the order approving Tennessee’s workers’ comp loss cost filing can be found on the TDCI website.
Last year, TDCI approved a 5.6% overall loss cost decrease for 2022 in light of a “continued trend of safer workplaces,” Lawrence said at the time.
The workers’ compensation market in the US has felt the pressure of the COVID-19 pandemic in recent years. However, amid the “short-term shock” brought by the pandemic, a long-term trend of decreasing frequencies is expected to persist.
“We saw a long-term trend of workers’ comp continually getting better,” said EMC Insurance chief underwriting officer Ed Pulkstenis earlier this month. “Frequencies have come down for many, many years now, while employer safety has improved consistently. But then we were hit with this very dramatic shock, something that impacts where people work and how people work.”
If you'd like to learn more about what's going on in the world of workers compensation, take a look at the most common reasons why workers compensation claims are denied.
