Steep Decline in Workers Compensation Insurance Rates Tennessee 2019
For the sixth year in a row, the Tennessee Business Community will benefit from a decrease in the amount they pay for workers compensation insurance premium. Earlier this month, the Tennessee Department of Commerce and Insurance (TDC&I) announced an approval of a 19% decrease in pure premium rates for Workers Compensation Insurance Rates Tennessee 2019. This reduction is in addition to previous reductions of 12.6% and 12.8% that were approved in 2017 and 2018. This current reduction will go in to effect on the first of March 2019.
What Caused a Reduction in Workers Compensation Insurance Rates Tennessee 2019?
The main reasons for a reduction in Workers Compensation Insurance Rates Tennessee 2019 is because employers are seeing fewer significant workplace injuries, a decrease in lost-time frequency, and the overall average cost per case as well as the medical cost per case have decreased.
Many within the industry in the state of Tennessee are complimenting the reforms made to the workers’ compensation system in 2013. These reforms especially contributed to a decrease in lost-time frequency. This means injured workers are spending less time off the job and are returning to full-time work more quickly and more often than in years past. In addition to a decrease in lost-time, both indemnity average cost per case and medical average cost per case have remained “relatively stable” according to representatives from the National Council on Compensation Insurance (NCCI).
Because the insurance carriers have benefited from less costs some of the savings are being redistributed to the business community in the state of Tennessee. These savings are being redistributed in the form of lower Tennessee Workers Compensation Insurance Premiums. Since 2013, Tennessee has seen a reduction of 48% on average for workers compensation premium over the past five years.
Before the most recent reductions in premium, Tennessee was the 28th most affordable state in the country for workers comp coverage according to a biennial study done every two years by the state of Oregon. When this study is released again in March of 2019 Tennessee can expect to be much lower in the rankings.
