Earlier this month, Indiana Department of Insurance Commissioner Stephen Robertson announced the approval of a 9.3% reduction for workers’ compensation rates to be effective January 1, 2017. The reduction is the biggest rate decrease Indiana has seen in 25 years.
This reduction will result in savings of approximately $82.7 million dollars for Hoosier businesses.
The Indiana Comprehensive Rating Bureau established this recommended advisory rate by taking a two-year review (2013-2014) and estimating going forward.
Workers’ compensation insurance covers medical costs associated with workplace injuries and provides wage replacement benefits to injured workers for lost work time. The frequency of such claims is down both in the state and nationally. These lower rates are also likely a result of workplaces generally becoming safer.
For many years, the Indiana Chamber has fought for rational, reasonable laws; we are glad to see the Department of Insurance recognize the current climate and take this positive step. The savings are significant and will help encourage additional growth in the business community.