For the second consecutive year, most Missouri businesses are expected to see a decrease in their workers’ compensation insurance rates in 2016, Gov. Nixon announced today during a visit to the Nelson Mulligan Carpenters Training Center in Affton. The largest recommended decrease is in the contracting industry, which includes construction, at 4.9 percent.
“Skilled workers are safe workers, and safe workers help keep costs down for everyone,” Gov. Nixon said. “I appreciate the skilled laborers throughout the state that have made work sites safer, helping to make Missouri a leader in lower worker compensation costs.”
Preliminary figures collected by the Missouri Department of Insurance indicate the National Council on Compensation Insurance (NCCI) is proposing an overall decrease of 2.4 percent from its 2015 loss costs. Loss costs reflect the costs of workers’ compensation claims. Loss costs do not include the insurance company’s administrative costs, taxes, agent expenses, profits or overhead.
When compared to other Midwestern states, Missouri ranks lower than the regional average, and lower than Illinois, Iowa and Oklahoma. Insurers and self-insurers use loss costs to establish workers’ compensation premiums for Missouri employers.