November 15, 2021
Missouri Department of Commerce and Insurance recommends a significant decrease in workers’ compensation loss costs for 2022
Jefferson City, Mo – The Missouri Department of Commerce and Insurance is recommending a 7.7 percent decrease in workers’ compensation insurance loss costs for 2022. This marks the largest overall decrease since 2009.
“Recommended loss costs are decreasing significantly for 2022, due to the continued decline in loss-time claim frequency as a result of safer work places and improved risk management,” said Department of Commerce and Insurance Director Chlora Lindley-Myers. “In addition, for the first time since 2013, there has been a decrease in the average medical cost per lost-time claim. The Missouri Workers Compensation Insurance Market remains robust and competitive with 371 carriers currently offering coverage within the state. I encourage employers to shop around for the best workers’ comp rates. The department provides an online rate checker to assist employers with comparison shopping.”
Prospective loss costs are intended to cover indemnity and medical payments for injured workers and some of the expenses associated with providing these benefits. Insurers use loss costs to set their workers’ compensation insurance rates. Every year, the National Council on Compensation Insurance (NCCI), an industry-funded group, files advisory loss costs with the department. The department reviews the NCCI’s methodology and assumptions and develops its own recommended loss costs. Under Missouri law, insurers may set their rates based on the NCCI’s recommendations, the department’s recommendations, or their own actuarial analysis. Insurers are not required to change their rates in 2022, regardless of the recommendations made.
Both the NCCI and the department propose an overall loss cost decrease of 7.7 percent for policies effective Jan. 1, 2022.
The NCCI’s proposed average changes in loss costs by industry group are shown below:
Manufacturing: 7.9% decrease
Contracting: 8.7% decrease
Office and Clerical: 6.3% decrease
Goods and Services: 7.5% decrease
Miscellaneous: 7.8% decrease
The NCCI’s 2021 loss cost filing and the department’s independent actuarial review are available on the department’s website.