FOR IMMEDIATE RELEASE

December 28, 2023

Workers’ Compensation Rates Down 9% in 2024

Louisiana Insurance Commissioner Jim Donelon has approved the annual loss cost filing of the National Council on Compensation Insurance (NCCI) for a 9% reduction in workers’ compensation rates. The decrease will take effect in May 2024.

Workers’ compensation rates have fallen consistently over the past two decades. They have had a cumulative drop of -37% over the last five years, -49% over the last ten years, and -66% over the past 20 years.  

“This rate decrease continues the downward trend we have seen over the years,” said Commissioner Donelon. “Our workers compensation market is competitive, and it’s a significant benefit to businesses statewide.”

The mission of the NCCI, which was founded in 1923, is to foster a healthy workers’ compensation system. In support of this mission, NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations to its 35 member states and the District of Columbia. NCCI members can adopt the approved rate, or they can include NCCI’s analysis with their own loss experience to complete their own rate filing with the Louisiana Department of Insurance.

The total Louisiana workers’ compensation insurance market in 2023 is estimated to have about $950 million in written premium. Louisiana has 263 companies writing workers’ compensation insurance, producing a competitive market as compared with the market crisis we had in the 1980s when then-Senator Mike Foster created the state market of last resort, Louisiana Workers’ Compensation Corporation (LWCC), for businesses that could not get workers’ compensation coverage for their employees.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.