“The Tennessee workforce will benefit from these loss cost reductions as a result of less frequent lost time claims and more stable claim costs,” Lawrence said.
According to TDCI, since reforms to the workers’ compensation system were implemented in 2014, Tennessee’s loss cost reductions have enabled employers to save significant money. Additionally, employers in Tennessee have reported fewer major work-related injuries over the years, helping to reduce damage costs.
“Continued declines in premiums are good for Tennessee’s business environment while keeping our economy strong,” said Tennessee Governor Bill Lee. “By lowering premiums, business owners have the opportunity to reinvest in their companies and better fund their businesses. Employee Services, I thank the Department of Commerce and Insurance for the work it does to serve Tennesseans.”
Insurance companies that offer workers’ compensation in this state use a combination of State Compensation Insurance Loss Costs filing boards with company experience and expenses to determine complete insurance rates.
A copy of the order approving the filing of Tennessee workers’ compensation loss costs can be found on the TDCI website.
Lawrence said at the time that last year TDCI approved a 5.6 per cent reduction in overall damage costs by 2022, given the “continuing trend towards safer workplaces”.
The U.S. workers’ compensation market has felt the strain of the COVID-19 pandemic in recent years. However, in the “short-term shock” brought about by the epidemic, the long-term trend of decreasing frequency is expected to continue.
“We’ve seen a long-term trend of improving worker compensation,” Ed Pulkstenis, chief underwriting officer at EMC Insurance, said earlier this month. A very dramatic shock that impacts where and how people work.”