August 23, 2016

Missouri businesses should expect to see workers' compensation rates continue to decline

Jefferson City, Mo - Employers should see a reduction in workers’ compensation rates for the third straight year in a row according to preliminary figures collected by the Missouri Department of Insurance from the National Council on Compensation Insurance (NCCI). The NCCI recently proposed an overall decrease of 3.7 percent for 2017 workers’ compensation loss costs.

“Missouri businesses will be pleased to hear that workers’ compensation rates on average should decrease again in 2017,” said Missouri Department of Insurance Director John M. Huff. “With 336 active carriers and rates continuing to decline, Missouri has a competitive workers’ compensation market that benefits Missouri businesses.”

Insurers and self-insurers use loss costs to establish workers’ compensation rates for Missouri employers.  According to the NCCI, claims from injuries where there is lost time from work, continue to decline.  Medical inflation continues to grow, but is increasing at a slower pace than the decline in lost-time claims, contributing to this years’ decrease. 

Of Missouri’s 336 active carriers, 220 carriers filed rate decreases in 2016 with an average decrease of 2.9 percent. A decrease in rates means more savings for businesses in Missouri.  

The NCCI’s proposed change in loss costs by industry group is shown below: 

  Industry Group

  Average Change





  Office and Clerical


  Goods and Services







After a thorough review of the NCCI loss costs, the department will recommend its own loss costs. Workers' compensation claims are regulated by the Division of Workers' Compensation in the Missouri Department of Labor and Industrial Relations, and rates are reviewed by the Department of Insurance.