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Federal tax reform contributes to midyear comp rate reductions


Provisions of the Tax Cuts and Jobs Act have resulted in proposals and approvals for midyear workers compensation rate reductions in five states, according to details behind several recent filings by the National Council on Compensation Insurance.

Rate reductions will go into effect June 1 for Idaho and Florida, per recent regulatory approval. Reductions have not been announced in other states.

Yet insurance market analysts say the reductions — between 1.8% and 4.7%, as filed by Boca Raton, Florida-based NCCI — can also be attributed to the competitive marketplace for comp coverage.

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