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NCCI proposes 5.1% cut in Louisiana workers comp rates


A decrease in the frequency of Louisiana workers compensation claims has led the National Council on Compensation Insurance Inc. to request that rates be decreased 5.1% next year.

In a presentation posted online Thursday, Boca Raton, Fla.-based NCCI said the frequency of workers comp lost-time claims fell 5.8% in Louisiana in 2011 compared with 2010.

However, Louisiana’s average medical claim severity increased “modestly” in 2012, based on preliminary data from NCCI. And combined ratios for Louisiana workers comp insurers remained high at 120.7% in 2011, down from 121.8% in 2010.

NCCI’s rate filing would take effect May 1, 2014, if approved by the Louisiana Department of Insurance.

It includes an average 6.7% rate cut for Louisiana manufacturers, a 6.1% decrease for office and clerical firms, a 5.7% decrease for goods and services companies, and a 5% rate cut for contractors.

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