Morgan’s Tip of the Week – 2019 Fla WC Premium Rates Going Down


According to the attached 11/2/18 order from the Office of Insurance Regulation, WC rates in Florida will be reduced by 13.8% for 2019. 

(In 2015, rates had been down around 61% from the high rates of 2002, then we saw a 14% increase after Castellanos and Westphal, last year rates dropped by around 9%)

Why are rates dropping when the law has gotten worse?  According to NCCI,  there are fewer lost-time claims due in part to safer workplaces, enhanced efficiencies in the workplace, and increased automation.

The data used to determine the rates is based on the claims from 2015 and 2016, valued at the end of 2017.   Castellanos was decided on 4/28/2016 and Westphal was June 9,2016.  The NCCI study the order was based on acknowledges that only a portion of the study period includes the impact of those two cases.  (In my humble opinion, its not going to look that good over time, even with decreased claim frequency)  

Here is the order for your reading pleasure.

Morgan Indek | Partner