Insurance Daily News

Connecticut Approves Workers' Comp Rate Cuts for 2027

The Connecticut Insurance Department has authorized a reduction in workers’ compensation rates for 2027, marking the thirteenth consecutive year of cost decreases in the state. Effective January 1, 2027, voluntary market loss costs will drop by an overall average of 4.9%, while rates for the assigned risk plan will see a 5.8% decrease.

Insurance Commissioner Joshua Hershman approved the filing, which was submitted by the National Council on Compensation Insurance (NCCI), following a 30-day public comment period. Department staff concluded that the filing was appropriate based on an analysis of Connecticut loss experience from policy years 2023 and 2024. The department did not hold a public hearing regarding the proposal.

The approved changes vary by industry group. Contracting will see the largest reduction at 6.0%, followed by Manufacturing at 5.5%, Miscellaneous at 4.9%, Goods & Services at 4.4%, and Office & Clerical at 3.6%.

Alongside the loss cost adjustments, the new rates include increases to maximum salary caps used for rating purposes. The annual payroll for partners and sole proprietors will rise to $92,400 from $89,200. Additionally, the maximum payroll for executive officers or LLC members will increase to $3,600 from $3,400, while the cap for professional athletes will adjust to $1,800 from $1,700.

For insurance professionals, this consistent downward trend in loss costs—which serve as the baseline for final premiums—signals a stable regulatory environment in Connecticut, though carriers must still account for their own operational overhead and profit margins when setting final rates.

Why it matters

The thirteenth consecutive year of rate decreases in Connecticut provides long-term predictability for insurers and employers operating in the state's workers' compensation market.

FAQ

What is the effective date for the new Connecticut workers' compensation rates?
The new rates take effect on January 1, 2027.

How much will voluntary market loss costs decrease?
Voluntary market loss costs will decrease by an overall average of 4.9%.

What data informed the 2027 rate filing?
The filing was based on Connecticut loss experience from policy years 2023 and 2024.

Did the department hold a public hearing on this filing?
No, the department did not hold a public hearing but accepted emailed comments during a 30-day period.

Source: Insurance Journal. See the original source for full details.