The Connecticut Insurance Department approved the proposed workers’ compensation loss cost filing made by the National Council on Compensation Insurance, consisting of an overall 3.8% decrease. Also approved was an overall assigned-risk rate reduction of 0.4%. These loss costs and rates will take effect Thursday, Jan. 1, 2026. For more on the CID approval, see its online Memorandum and Order.
In support of the filing, NCCI made the following key observations:
- Exponential fits were reviewed to support maintaining the currently approved indemnity and medical loss ratio trends of -4% and -6%, respectively.
- After adjusting to a common wage level, Connecticut’s lost-time claim frequency has observed a general long-term decline.
- After adjusting to a common wage level, the indemnity average cost per case has been relatively flat over the long-term although with moderate year-to-year variability, while the medical average cost per case figures have been declining, on average, with significant year-to-year variability.
- The primary driver of the proposed change is improved experience.
- The benefit change reflects the impact of recent updates to the Connecticut medical fee schedule, as well as H.B.6863.
- The proposed assigned-risk rate level change includes a proposed increase to the assigned-risk differential, as well as a proposed decrease to the uncollectible premium provision.
Key components
Components of the 3.8% reduction in the overall loss cost level include: changes in experience at -4.2%; development at -0.4%; trend at 0.0%; benefits at +0.9%; change in loss-based expenses at +0.2%; and offset for change in assigned-risk differential at -0.2%.
Terrorism/cat loss
The terrorism voluntary loss cost remains at $0.025, and the assigned-risk terrorism rate remains at $0.03. There is no change in the catastrophe charge of $0.01.
Loss cost multipliers
To convert voluntary loss costs to rates, the insurer’s loss cost multiplier must be applied. These LCMs are filed with the CID and are changed periodically by individual insurers. However, these changes need not coincide with the loss costs approved Thursday, Jan. 1, 2026. For the latest loss cost multipliers, PIA Northeast agents can access Connecticut workers’ compensation loss cost multipliers in PIA QuickSource document QS06146.
Shirley Albright, CPIA, CISR
Shirley Albright, CPIA, CISR, has been a cornerstone of PIA since joining the association in 1983. Over the decades, she has contributed meaningfully across numerous departments, demonstrating unwavering dedication and leadership. In 1995, Shirley played a pivotal role in launching the Industry Resource Center, where she led the development of a comprehensive software system designed to log and manage all incoming and outgoing member inquiries—an innovation that transformed the center’s operational efficiency. As director of the Industry Resource Center, Shirley oversees the center’s daily operations, including the triage and resolution of thousands of member inquiries and multiple database updates, ensuring timely and accurate support across the organization. Her industry accomplishments include earning her New York state property/casualty broker’s license and has obtaining the CPIA and CISR professional designations, underscoring her deep expertise and commitment to excellence in the insurance industry.
