New rates come into effect on January 1st
Indianapolis — Indiana Department of Insurance Commissioner Amy L. Beard recently approved an Indiana Compensation Rating Bureau (ICRB) recommended cut in worker compensation rates by an average of 10.3% effective January 1, 2023. Individual employers may experience a different rate change beginning on -10.3% depending on the rating class (classification by transaction type) and other rating factors. There are about 150 such industry types.
“The 10.3% decrease translates into savings for Indiana businesses of approximately $80 million,” said Commissioner Beard. “We are pleased to approve a rate cut that will help support Indiana businesses and workers.”
The 10.3% decline is primarily due to the long-term decline in the statewide worker compensation claims rate and recent positive experiences with Indiana’s average cost per claim for both compensation and medical benefits.
Workers’ Compensation Insurance covers medical costs related to work-related accidents and provides injured workers with wage replacement benefits for lost time. The Indiana Compensation Rating Bureau (ICRB) and the National Council on Compensation Insurance (NCCI) jointly submit a rate application to the Indiana Department of Insurance (IDOI) proposing claims costs and rates for the upcoming insurance year. As of 2021, there were approximately 350 different insurance companies writing workers’ compensation insurance in Indiana, representing approximately 120 different insurance groups.
According to the Oregon Workers’ Compensation Premium Rate Ranking report, Indiana workers’ compensation rates are consistently among the lowest in the United States. The Division of Information Technology and Research in the Oregon Department of Consumer and Business Services has been investigating state tariffs every two years since 1986.
About the Indiana Department of Insurance
The Indiana Department of Insurance protects Indiana’s insurance customers by monitoring and regulating the financial strength and market conduct activities of insurance companies and agents. The IDOI monitors insurance companies and agents for compliance with state laws to protect consumers and provide them with the best selection of insurance products available. The IDOI also assists Hoosiers with insurance issues and provides guidance on understanding how insurance policies work