NCCI requests 5.2% increase in Arizona workers comp ratesPosted On: Oct. 11, 2011 12:00 AM CST
PHOENIX—NCCI Holdings Inc. has requested a 5.2% increase in Arizona workers compensation rates for 2012, according to a presentation from the rating and research organization.
At a state advisory forum held in Phoenix last week by Boca Raton, Fla.-based NCCI, the organization said Arizona has seen a large decrease in written premium since 2007, along with an increase in total market combined ratio.
Arizona's private insurers and SCF Arizona, the state's largest workers comp insurer, showed a combined ratio of 132% last year, compared with 116% in 2009 and 115% in 2008.
NCCI noted that losses in the state's construction industry have impacted Arizona's overall workers comp market. However, an increase in Arizona's workers comp claim frequency was offset by a declining average cost per claim because of the recession.
Contractors would see a 6.7% average rate change under NCCI's 2012 rate filing, while goods and services companies would see a 5.6% increase, and office and clerical firms would see a 5.4% hike, the organization said.
Manufacturers would expect to see a 3.3% hike in their rates next year.