Frankfurt, Kentucky – The Kentucky Department of Insurance (DOI) announces approval of a 2021 rate file used to develop workers’ compensation coverage rates.
For the 16th consecutive year, the filing shows an overall decrease in Kentucky’s loss costs. The cost of the loss is the average compensation for lost wages based on the level of disability, plus payments for medical benefits.
The cost of the loss is a direct component of calculating the worker’s compensation insurance rate for an individual employer. There has been no negligible impact from the COVID pandemic.
“The decline shows the continued decline in lost time claim frequency and the steady trend of compensation intensity as well as the trend of annual compensation loss of -3.5%.” Under Governor Beshear’s leadership, Kentucky is increasing investment and job creation. The low claim numbers make Kentucky an attractive state to do business.”
According to the loss cost figures presented in the 2021 annual rate file, there is a mean decrease of 10.4% across the category codes used in Kentucky. Class codes define all forms of employment, including manufacturing, office, clerical, contracting, and goods and services. The lower cost of the loss is an average, the final price will vary for each employer and the premium. On average, the department has agreed to reduce loss costs by 19% over the past two years.
As in previous years, not all employers will see a reduction in loss costs. For example, loss costs in surface and underground coal mining increased by 5.5% and 1%, respectively.
The Kentucky Department of Insurance has agreed to provide the fee rate effective October 1, 2021.
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