What's Happening?
Connecticut's insurance regulator has approved a filing that will reduce workers' compensation rates starting January 1, 2026. The National Council on Compensation Insurance (NCCI) proposed the rate changes,
which include an average 3.8% decrease in loss costs for the voluntary market and a 0.4% decrease for the assigned risk market. This decision marks the twelfth consecutive year of declining workers' compensation costs in Connecticut. The reductions are based on the state's loss experience for policy years 2022 and 2023. Insurance Commissioner Andrew N. Mais approved the filing without any public comments or hearings.
Why It's Important?
The reduction in workers' compensation costs is significant for Connecticut employers, as it can lead to lower insurance premiums and operational costs. This trend of decreasing costs over the past twelve years suggests a stable or improving safety environment in workplaces across the state. Employers may benefit from reduced financial burdens, potentially allowing for reinvestment in business growth or employee benefits. Additionally, the consistent decrease in costs could make Connecticut a more attractive location for businesses looking to manage expenses effectively.
What's Next?
As the new rates take effect in 2026, businesses in Connecticut will likely assess the impact on their insurance expenses and overall financial planning. The continued trend of decreasing costs may prompt other states to evaluate their workers' compensation systems and consider similar adjustments. Stakeholders, including business associations and insurance providers, may monitor the outcomes to ensure that the reductions do not compromise the quality of coverage or workplace safety standards.
