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February 29, 2016There is good news for Nevada
employers as Acting Commissioner Amy L. Parks approved a filing from the
National Council on Compensation Insurance (“NCCI”) for an average decrease of
5.5 percent for Nevada workers’ compensation voluntary insurance loss costs. An
average decrease of 4.2 percent for workers’ compensation insurance
assigned-risk rates was also approved. The filing will take effect on March 1,
2016. This decrease in loss costs is the largest since NCCI’s 2010 filing when
loss costs decreased by an average of 7.6 percent.
The majority of the decrease in
loss costs is due to combined favorable changes in loss experience and
favorable changes in loss development. This suggests that the amount of
reported workers’ compensation claims will not grow over time by as large a
proportion as previously anticipated. Both indemnity and medical loss
components of workers’ compensation, as analyzed by NCCI in its recently
approved filing, showed improved experience and favorable loss development.
The reduction in assigned-risk
rates takes into account the factors affecting the voluntary market, as well as
information specific to the assigned-risk market. In addition to the average
decrease of 4.2 percent for the assigned-risk market, NCCI also reduced its
assigned-risk expense constant from $240 to $160. This change would tend to
benefit smaller risks in the assigned-risk market and is thus a change that is
favorable to small-business development in Nevada.
The table below illustrates by
industry group the proposed average changes:
Industry Group
|
Voluntary
|
Assigned Risk
|
Contracting
|
-5.0%
|
-3.7%
|
Goods &
Services
|
-5.7%
|
-4.4%
|
Manufacturing
|
-1.4%
|
-0.1%
|
Office &
Clerical
|
-7.2%
|
-5.9%
|
Miscellaneous
|
-6.5%
|
-5.2%
|
The approved
loss costs and rates can be found on the Nevada Division of Insurance website
on the following page: http://doi.nv.gov/Insurers/Property-Casualty/Filing-Information/Workers-Compensation/.
While most employers are able to purchase workers’
compensation insurance in the voluntary market, those who find their businesses
difficult to insure due to extraordinary losses in the past or unique and
unusual risks, can purchase the required insurance in the assigned-risk market.
The Division encourages employers to comparison shop for the best rate.
Nevada’s market remains competitive, so it pays to review all options. Nevada’s
reasonable workers’ compensation rates are among many reasons why
businesses should consider establishing themselves in Nevada. For more information
on the benefits of doing business in Nevada, visit the Nevada Commission on
Economic Development’s website: www.expand2nevada.com.
If you have
additional questions about workers’ compensation insurance, or if you would
like to learn more about health, home, life, and auto insurance options, and
tips for choosing the coverage that is right for you and your family, contact
the Nevada Division of Insurance at http://doi.nv.gov.
About the Nevada Division of
Insurance
The State of Nevada Division of
Insurance, a Division of the Nevada Department of Business and Industry,
protects the rights of Nevada consumers and regulates Nevada’s $11.9 billion
insurance industry. The Division of Insurance has offices in Carson City and
Las Vegas. In 2015, the Division investigated more than 3,200 consumer
complaints and recovered nearly $5 million on behalf of consumers. For more
information about the Division of Insurance, visit DOI.NV.GOV or download the
Division’s smartphone app NDOI Connect today in the Apple App Store and Google
Play.
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