Business Insurance

August 13, 2012

SPRINGFIELD, Ill.—NCCI Holdings Inc. has asked the Illinois Department of Insurance to consider a 3.8% decrease in advisory workers compensation rates for 2013, the department said in a statement Friday.

In a description of its rate filing, Boca Raton, Fla.-based NCCI said Illinois has seen a decrease in average comp claim costs in recent years. The rate reduction, if approved, would take effect Jan. 1.

Contractors would see a 12% decrease in comp rates, according to NCCI's proposed filing, while manufacturers would see a 5.9% decrease. Office and clerical firms would experience a rate reduction of 4.9%, and goods and services companies would see a 2.1% decrease.

The Illinois insurance department said its actuaries will review NCCI’s rate filing during the next 60 days.

“We’re pleased about the proposed rate reduction and look forward to the review process to confirm the results,” Illinois Insurance Director Andrew Boron said in a statement. “The lower rate would benefit Illinois employers with cost savings.”

Illinois employers would save $91 million in total workers comp premiums if the rate reduction is approved, the state insurance department said.

Now that savings is spreading in Illinois, employers are expecting it. What happens when you knock on a prospect's door and tell them that you could find savings and refunds going back several years? Wow your prospects and show them extra cash in addition to rate decreases and you will be their new hero. You should do this for your current clients as well because you will maintain their business and brokers earn first-year and renweal commissions with workers compensation premium recovery.