Drop of More Than 12% in Workers’ Compensation Rates in Louisiana Announced for 2023

Louisiana - The National Council of Compensation Insurance has proposed a 12.2% drop in workers' compensation rates in Louisiana, effective May 1, 2023. This decrease continues a downward trend observed in nine of the past 10 years, with rates falling by a total of 47% over the past decade and 63% over the past two decades. There are 251 workers' compensation insurance providers in Louisiana, creating a highly competitive market that has contributed to the decrease in premiums. The Louisiana workers' compensation insurance market is expected to generate around $850 million in premiums in 2022.

On December 21, 2022, the Louisiana Department of Insurance revealed that Insurance Commissioner Jim Donelon had authorized the National Council of Compensation Insurance's (NCCI) annual loss cost filing for a -12.2% drop in workers' compensation rates. The reduction, effective 1 May 2023, continues the downward trend observed in nine of the previous ten years.

Workers' compensation rates have decreased significantly over the previous two decades, falling by a total of -35% over the past five years, -47% over the past ten years, and -63% over the past two decades.

“Workers’ compensation rates have been a great success story in our market,” said Commissioner Donelon. “We’ve seen a strong downward trajectory in rates over the past two decades, including this year’s double-digit decrease. Our workers’ compensation market is thriving, and that’s great news for Louisiana employers.”

In 2022, the overall Louisiana workers' compensation insurance market is projected to generate around $850 million in premiums. There are a record 251 workers' compensation insurance providers in Louisiana, producing a highly competitive market that has greatly contributed to the decrease in premiums stated above.

The NCCI, founded in 1923, aspires to develop a robust workers' compensation system. In support of this aim, NCCI collects data, analyzes industry trends, and provides 35 member states and the District of Columbia with objective insurance rate and loss cost recommendations. Members of NCCI can adopt the authorized rate or submit their own rate file to the Louisiana Department of Insurance using NCCI's analysis and their own loss experience.