What's Happening?
Connecticut's insurance regulator has approved a filing that will reduce workers' compensation rates starting January 1, 2026. The new rates will see an average 3.8% decrease in loss costs for the voluntary
market and a 0.4% decrease for the assigned risk market. This marks the twelfth consecutive year of rate reductions in the state, reflecting a trend of decreasing overall cost levels based on recent loss experience. The decision was made without public comments or hearings.
Why It's Important?
The reduction in workers' compensation rates is a positive development for businesses in Connecticut, potentially lowering operational costs and improving financial stability. This trend of decreasing rates over the past decade suggests a favorable environment for employers, which could enhance the state's attractiveness for business operations. The decision also reflects effective risk management and loss prevention strategies within the industry, benefiting both insurers and policyholders. The continued decrease in rates may encourage economic growth and job creation in the state.
