Indiana Department of Insurance Commissioner Amy L. Beard recently approved a decrease of 10.3% on average for Workers’ Compensation rates recommended by the Indiana Compensation Rating Bureau (ICRB), effective January 1, 2023. Individual employers may experience a rate change different from -10.3% depending on their rating class (classifications based on the type of business) and other rating factors. There are approximately 150 such industry types.
“The 10.3% decrease represents a savings to Indiana businesses of approximately $80 million,” said Commissioner Beard. “We are pleased to approve a rate decrease that helps support Indiana businesses and Indiana workers.”
The 10.3% decrease can be attributed primarily to the long-term decline in workers’ compensation countrywide claim frequency, and the recent favorable experience in average costs per claim in Indiana for both indemnity and medical benefits.
Workers’ compensation insurance covers medical costs associated with workplace injuries and provides wage replacement benefits to injured workers for lost work time. The Indiana Compensation Rating Bureau (ICRB) and the National Council on Compensation Insurance (NCCI) jointly make a rate filing with the Indiana Department of Insurance (IDOI) proposing loss costs and rates for the coming year of policies. In 2021, there were approximately 350 different insurance companies writing workers’ compensation insurance in Indiana, representing approximately 120 different insurer groups.
Indiana Workers’ Compensation rates consistently rank one of the lowest in the United States, according to the Oregon Workers’ Compensation Premium Rate Ranking report. The Information Technology and Research Section in the Oregon Department of Consumer and Business Services has examined state rates on a biennial basis since 1986.