Maine announces 4.3% comp rate cut

Maine’s workers compensation lost costs are set to decrease 4.3%, effective immediately, according to a statement Friday from Eric Cioppa, superintendent of the Maine Bureau of Insurance.

The bureau approved the rate decrease, which was proposed by the Boca Raton, Florida-based National Council on Compensation Insurance Inc.

Maine saw a 4% decrease in lost-time comp claim frequency in 2014, compared with a 5% increase in comp frequency for 2013, according to a state advisory forum presentation by NCCI on March 23. Maine's workers comp indemnity claim severity also fell 3.9% year-over-year in 2014, compared with a 6.1% increase in indemnity claim severity in 2013.

NCCI also noted that workers comp medical claim severity has been "stable" in Maine in recent years, and that combined ratios have been falling for Maine comp insurers.

Maine has experienced a cumulative decrease in workers comp rates of 53.6% since reforms were introduced in 1992, Mr. Cioppa said. The decrease is expected to lower premiums across all industries, he said.