Payrolls Slowdown Challenges WC Premium Growth

NCCI said this week that recessionary conditions in the U.S. economy and labor market have well-documented impacts on workers compensation.
In the group’s third-quarter economic outlook, NCCI’s Stephen Cooper, Patrick Coate, and Yariv Fadlon wrote that a sustained slowing trend in the labor market has important implications for workers compensation.
Slower hiring and moderating wage growth combine to slow overall payroll growth, potentially raising challenges to premium growth in workers compensation.
Though optimistic about the economy, they wrote that they have “increased our level of caution given the recent data developments, particularly in the labor market,” as recessionary conditions in the economy and labor market have well-documented impacts on workers compensation.
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Texas Mutual Insurance has awarded more than $2 million in safety grants to 1,340 policyholders.
TMI has awarded more than $11 million in safety grants over the last nine year to qualifying policyholders to help build stronger, safer workplaces, according to a statement.
Safety grant applicants were asked to detail what types of equipment they planned to purchase and how it would improve safety and health conditions in their workplace.
The majority of items requested were in the personal protective equipment category, including safety glasses, work gloves, ear plugs and face shields. General safety items and ergonomic equipment were the second- and third-most requested categories.
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Colorado has approved a 4.3% cut in the average loss costs component of workers’ compensation insurance premiums for 2025.
Loss costs are the average cost of lost wages and medical payments of workers injured during the course of their employment.
Having cut those costs for the past decade, the average overall annual decreases in the loss costs have contributed to a 53.5% cumulative average decrease over the last 11 years, according to the state’s Division of Insurance.
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New York State employers are expected to save more than $191 million dollars in 2025 due to a reduction in the annual WC assessment rate, according to an announcement this week from Gov. Kathy Hochul.
The rate beginning Jan. 1, 2025 will be 7.1% of the standard premium or premium equivalent, some 22% lower than the 2024 rate,
The reduction is expected to save New York State businesses approximately $191 million.
The new extends to more than 43% the total decrease in the last five years, from the 2019 assessment rate of 12.6%.
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