August 16, 2013

Wink News

Insurance companies are seeking a one percent increase in workers compensation rates in Florida.

If granted it would mark the fourth straight year of rate hikes. Employers purchase workers compensation insurance to cover on-the-job injuries. The state Office of Insurance Regulation announced Friday it had received a proposal from the National Council on Compensation Insurance. The council is a rating and data collection agency owned by insurance companies. It submits rate filings on their behalf.
    
If state regulators approve the rate hike would go into effect Jan. 1.

The rate hike was proposed even though state lawmakers passed a measure this year that capped how much doctors can get paid for prescribing certain drugs used by injured workers.

A public hearing will be held on the proposal in October.

If you are a broker who writes workers comp in Florida, especially with clients who renew on January 1st or later, you should realize that these rate increases mean an increase in your clients' premiums. Whether these rates get approved or not, you can expect rates to continue to go up anyway, considering the hardening market. Employers who see such big increases in their workers comp insurance will start shopping around for a cheaper policy elsewhere. Workers compenastion premium recovery is the quickest and easiest way to help your clients obtain workers compensation refunds and help them have a better underwriting profile for the renewal marketplace. Keep your existing clients happy, increase your book of business, and add a new revenue stream.