Workers' Comp Companies Filing Rate Decreases
Released: May 25, 2007
Commissioner of Insurance Jim Donelon announced today that rates for workers' compensation insurance are decreasing, thanks to a large drop in loss costs for insurers.
Most workers' comp carriers in Louisiana use the National Council on Compensation Insurance (NCCI) annual loss cost filing report to help formulate their insurance rates. As a result of a recent NCCI lost cost filing showing Louisiana with the nation's largest percentage drop in loss costs at 15.8%, several companies have filed for a rate decrease with the Department of Insurance. More filings are coming in at present and this trend will likely continue.
Shown on the attached exhibit are the companies with a statewide market share of 0.1% or more requesting a rate decrease over the past month. The 27 companies shown are collectively requesting an average 15.9 percent decrease in rates. The total Louisiana workers' compensation market is estimated at $1.03 billion. These 27 companies account for $230 million or approximately 22.4 percent of the market.
"This is positive news for our state's workers' compensation market," said Commissioner Donelon. "Our market is healthy and viable."
Companies Requesting a Workers' Compensation Rate Decrease in April and May 2007*
Company Name |
Group Name | Requested Revision (%) | Market Share ($000’s) | Market Share (%) |
| Federated Rural Electric Ins Exchange | N/A** | -26.5% | $ 1,149 | 0.1% |
Liberty Ins Corp |
Liberty Mutual | -22.1% | $ 21,764 | 2.1% |
| Liberty Mutual Ins Co | Liberty Mutual | -22.1% | $ 16,645 | 1.6% |
| Liberty Mutual Fire Ins Co | Liberty Mutual | -22.1% | $ 9,322 | 0.9% |
| LM Ins Corp |
Liberty Mutual | -22.1% | $ 4,833 | 0.5% |
| The First Liberty Ins Corp |
Liberty Mutual | -22.1% | $ 1,094 | 0.1% |
| Valley Forge Ins Co |
CNA | -17.5% | $ 3,782 | 0.4% |
| SeaBright Ins Co |
N/A** | -15.8% | $ 12,121 | 1.2% |
| Arch Ins Co |
Arch | -15.8% | $ 1,284 | 0.1% |
| Old Republic Ins Co |
Old Republic General | -15.6% | $ 1,927 | 0.2% |
| American Home Assurance Co |
AIG | -15.1% | $ 41,254 | 4.0% |
| Commerce and Industry Ins Co |
AIG | -15.1% | $ 29,550 | 2.9% |
| The Insurance Co of the State of PA |
AIG | -15.1% | $ 16,575 | 1.6% |
| Illinois National Ins Co | AIG | -15.1% | $ 14,286 | 1.4% |
| New Hampshire Insurance Co |
AIG | -15.1% | $ 11,797 | 1.2% |
| American International South Ins Co |
AIG | -15.1% | $ 3,056 | 0.3% |
| National Union Fire Ins Co of Pitts, PA |
AIG | -15.1% | $ 2,577 | 0.3% |
| Bituminous Casualty Corp |
Old Republic General | -13.0% | $ 3,736 | 0.4% |
| LA Oilfield Contractors Assn Ins Fund |
N/A** | -10.6% | $ 4,707 | 0.5% |
| Twin City Fire Ins Co |
Hartford | -10.0% | $ 4,983 | 0.5% |
| Hartford Ins Co of the Midwest | Hartford | -10.0% | $ 3,640 | 0.4% |
| Hartford Underwriters Ins Co | Hartford | -10.0% | $ 2,789 | 0.3% |
| Hartford Casualty Ins Co |
Hartford | -10.0% | $ 1,828 | 0.2% |
| Hartford Fire Ins Co |
Hartford | -10.0% | $ 1,325 | 0.1% |
| National Fire Ins Co | CNA | -9.2% | $ 2,842 | 0.3% |
| Transportation Ins Co |
CNA | -6.5% | $ 4,955 | 0.5% |
| Continental Casualty Co |
CNA | -5.3% | $ 6,407 | 0.6% |
| Total 27 Companies | -15.9% | $230,228 | 22.4% |
* Companies with at least 0.1% market share
** No group affiliation