CT Workers’ Comp Loss Costs To Fall 4.9%
The Connecticut Insurance Department (CID) announced yesterday that it has approved reduced loss costs for Workers’ Compensation insurance policies to take effect this winter. Loss costs for policies written in the voluntary market will decline an average of 4.9%. Those for assigned risk policies will decline by an average of 5.8%.
Loss costs are not premium rates. They reflect the expected cost of paying losses plus adjustment expenses. Each insurance carrier applies a factor known as a loss cost multiplier (LCM) to a loss cost to determine the rate. The LCM increases the loss cost to account for insurer overhead and expected profit. CID reviews and approves filed LCMs for each private insurance carrier.
The National Council on Compensation Insurance (NCCI) filed the proposed loss costs with CID in September and CID adopted the loss costs as filed. The new decreases follow smaller decreases in 2026. Last year, the average loss costs for voluntary and assigned risk policies decreased by 3.8% and 0.4%, respectively.
The new loss costs apply to policies effective on and after January 1, 2027.
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