NCCI Recommending a 5.5% Drop to Advisory Rates for 2015
The National Council on Compensation Insurance (NCCI) advisory rates determine the premiums businesses pay for workers’ compensation insurance. On July 30, 2014 Governor Quinn announced that NCCI has filed a request for lower workers’ compensation rates in Illinois, recommending a 5.5% drop in the advisory rate for 2015. With the implementation of the proposed rate reduction, the advisory rate level will have dropped 18.1% below the advisory rate level prior to the 2011 workers’ compensation reform legislation. This will be the fourth rate reduction in five years since the reforms were enacted.
The Illinois Department of Insurance (DOI) estimates that the proposed reduction in advisory rates could result in overall reduction in premiums of up to $143 million in 2015, with the total savings since the reforms were enacted of $458 million. If the DOI accepts the filing, to be effective January 1, 2015, employers are advised to contact their insurance agent prior to their 2014 renewal date to determine the impact on their premium.
Thanks to attorney Scott McCain for the update on this issue.