7 Percent Decrease on Overall Loss Cost Decrease for 2020
Tennessee Workers Compensation Insurance Rates in 2020 will be declining in 2020 for the seventh consecutive year. This announcement came in December from the Tennessee Department of Commerce and Insurance. The decreases will go in to effect as of March 1, 2020. This decrease is in addition to a 19 percent decrease on Tennessee Workers Comp Rates in 2019.
The Tennessee Workers Compensation System implemented several rounds of reforms in 2014. These changes have contributed to loss cost reduction of over 52 percent. Fewer workplace injuries have been the strongest contributing factor to the decline in workers comp rates.
The National Council on Compensation Insurance (NCCI) initially recommended a decrease of 9.5% based upon ratings and losses in the past year, but the rate reduction was trimmed when new medical payment rates were later adopted and limited some of the projected savings going forth.
According to Governor Bill Lee, “The continued decline in workers’ compensation premiums highlights Tennessee’s focus on creating an environment where businesses can grow, employees can prosper, and our state can continue to attract companies and high-paying jobs,”
What do Tennessee Workers Compensation Insurance Rates Declining mean for the Business Community
According to the Tennessee Department of Commerce & Insurance Commissioner Hodgen Mainda, “These reductions are great news for Tennessee employers, employees, and our rural communities,” Mainda said. “The reductions mean employers may now have more money to invest into their businesses and employees, which will, in turn, benefit local communities and continue to enhance the Volunteer State’s ability to recruit companies and talent.”