FOR IMMEDIATE RELEASE Contact: Karma Lombard, Office Manager
March 20, 2024
Maine’s Bureau of Insurance Approves 19% Average Decrease in
Workers’ Compensation Loss Costs
Reduction could save Maine businesses an estimated $55 Million
Maine Bureau of Insurance Superintendent Robert Carey announced approval of the National Council on Compensation Insurance, Inc.’s (NCCI) 2024 loss costs for Maine, filed 01/10/2024, which proposed an average loss cost decrease of 19%. The new NCCI loss costs go into effect for new and renewing policies as of April 1, 2024.
“This is good news for Maine employers,” said Carey. “The NCCI loss costs are the standard for most workers’ compensation coverage in Maine, and they are an important part of the rates charged for this coverage. This filing should result in lower workers’ compensation rates for the majority of Maine employers.”
If all insurers fully adopt the decrease, Maine businesses could save an estimated $55 million in the year following implementation.
Loss costs are based on previous and projected losses and benefit payments. NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage in Maine. NCCI-approved loss costs are available to insurers to reference when filing their workers’ compensation rates with the Bureau of Insurance.
The 19% decrease is an average loss costs change, which ranges from -17.1% to -20.1% depending on the industry group. This is an average decrease so most Maine businesses should see decreases in premiums, but some individual businesses may see increases.
Maine has a competitive market for workers’ compensation insurance and each insurer sets its own rate level, subject to review by the Bureau. Insurers may also modify the NCCI loss costs, and they select their own expense and profit factors in setting rates.
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Consumers with questions about insurance matters can obtain information and assistance from the Bureau by visiting the agency’s website (www.maine.gov/insurance), calling