Indiana businesses will see some savings in workers’ compensation insurance rates for 2023.
Indiana Department of Insurance Commissioner Amy Beard approved a rate decrease of 10.3% on average, which was recommended by the Indiana Compensation Rating Bureau, effective Jan. 1.
Individual employers may see a rate change different from -10.3% depending on their rating class and other rating factors, the state said. There are approximately 150 industry types.
“The 10.3% decrease represents a savings to Indiana businesses of approximately $80 million,” Beard said. “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, the state said.
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 and the National Council on Compensation Insurance jointly make a rate filing with the Indiana Department of Insurance proposing loss costs and rates for the coming year of policies.
In 2021, there were an estimated 350 insurance companies writing workers’ compensation insurance in Indiana, representing about 120 different insurer groups.