What's Happening?
The New Hampshire Insurance Department (NHID) has approved a 6.1% reduction in voluntary workers' compensation loss costs, effective January 1, 2026. This decision marks the 14th consecutive year of rate reductions in the state's voluntary market, resulting in a cumulative reduction of over 66%. The assigned risk pool will also see a reduction of 5.4%. The approval follows a recommendation from the National Council on Compensation Insurance (NCCI), which cited declining claim frequency and moderate benefit costs as contributing factors. Christian Citarella, NHID's chief property/casualty actuary, highlighted safer work environments and faster recovery times as key drivers of these reductions.
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Why It's Important?
The continued reduction in workers' compensation rates in New Hampshire is significant for both employers and employees. Lower rates can lead to reduced insurance premiums for businesses, potentially freeing up capital for other investments or operational costs. For employees, safer work environments and improved recovery times can enhance job satisfaction and productivity. The broader economic impact includes potential growth in the state's business sector, as lower insurance costs can attract new businesses and support existing ones. The healthy state of the workers' compensation system, as indicated by the NCCI, suggests a stable and efficient insurance market.
What's Next?
Insurers writing voluntary workers' compensation in New Hampshire will need to adopt the new loss costs, adjusting for their specific company expenses. The NHID and NCCI will continue to monitor the state's workers' compensation system to ensure ongoing improvements in safety and cost efficiency. Employers may need to implement further safety measures to maintain the trend of declining claim frequency. The NHID's decision could influence other states to consider similar rate reductions, potentially leading to broader changes in the national workers' compensation landscape.
