Insurance department recommends workers' comp rate cut
The Missouri Department of Insurance is recommending a decrease in workers' compensation insurance rates for 2010, marking the fourth consecutive year of recommended declines.
The department on Wednesday recommended an 8.1 percent decrease in overall workers' compensation rates for 2010, which the department estimates could save state businesses $80 million next year.
The department cites several factors for its recommendation, which is based on a decline in costs. Most notable, according to a news release from the Missouri Chamber of Commerce and Industry, is the series of workers' compensation reforms passed in 2005; the state insurance department attributed 3.4 percent of the drop in costs to those reforms.
"Each passing year provides more evidence of the positive impact the 2005 reforms are having today for Missouri employers," said Daniel P. Mehan, Missouri Chamber president and CEO, in the release. "With Missouri employers trying to emerge from this national recession, this suggested rate decrease could not have come at a better time."
The department also cited increased competitiveness among workers' comp carriers, improved safety and fewer employee claims as reasons for the lower costs.[[In-content Ad]]