Louisiana comp rate reduction approved

Louisiana businesses may see workers compensation premiums drop for the sixth year in a row.

State Insurance Commissioner James Donelon approved an 8.4% workers compensation rate reduction Friday based on an annual loss cost filing from the Boca Raton, Florida-based National Council on Compensation Insurance Inc., the Louisiana Department of Insurance said in a statement.

The state’s workers comp rates have had a cumulative drop of nearly 25% over the past five years, and a 55% drop over the last 20 years, according to the statement. The new rate will take effect May 1, 2020.

Louisiana’s workers compensation insurance market is estimated to be about $800 million in total premium.