Federal Tax Cuts Spur 1.8% Decrease in Florida Workers’ Comp Rates
The Florida Office of Insurance Regulation (OIR) has approved a 1.8 percent rate decrease for workers’ compensation insurance in Florida. The decrease was filed by the National Council on Compensation Insurance (NCCI) in a law-only filing resulting from the effects of the Federal Tax Cuts and Jobs Act, according to a statement from OIR.
OIR said the overall rate level change is a 1.8 percent decrease due to a change in the profit and contingency (P&C) factor to 0.5 percent from 1.85 percent. NCCI’s analysis to determine the revised P&C reflects provisions from the recently-passed Tax Cuts and Jobs Act, including top corporate tax rate decreases, changes to reserve discount factors, and other factors. This applies to both new and renewal workers’ compensation insurance policies effective in Florida as of June 1, 2018.