By MARK HAYWARD
Workers’ compensation rates could fall an average of 9 percent for policies that go into effect next year, the fifth year in a row that rates could fall for employers, the state Insurance Department said.
The Insurance Department said an insurance-industry rating organization proposed the reduction earlier this month. It still must be reviewed and approved by state regulators.
“A decrease in workers’ compensation rates means a decrease in costs to New Hampshire businesses,” said Insurance Commissioner Roger Sevigny in a statement. “These considerable savings could be used to bring more workers, higher salaries, and expanded operations to New Hampshire.”
The National Council on Compensation Insurance proposed that voluntary lost costs in 2017 policies fall by 9 percent. The loss cost is the portion of an employer’s insurance premium that pays claims costs for work-related injuries.
Manufacturing and contracting would experience the largest drop, about 10 percent, in average loss costs. Office, clerical and good and service groups would see loss costs of about 9 percent.
According to the Insurance Department, rates have dropped in each of the last four years, with reductions ranging from 0.2 to 6.5 percent. Rate reductions have been even higher in the residual market.
“Insurance rates tend to be cyclical, and workers’ compensation continues to be in a soft market. At this point I don’t see any evidence that the cycle is shifting,” said Sally MacFadden, an actuary in the Insurance Department’s property and casualty office.
In a statement issued Tuesday, New Hampshire Senate Republican leader Jeb Bradley said workers’ compensation reforms passed last year played a part in the reduction.
Bradley said the reform bill requires health care providers prove that the cost of services rendered in workers’ comp cases is reasonable.
“This change in conjunction with other reforms has set that ball in motion to continue driving down workers’ comp rates for employers in the future,” Bradley said.
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