TALLAHASSEE, Fla. - The Florida Office of Insurance Regulation (Office) today released its annual report on the state of the market for workers' compensation insurance to the Florida Legislature.
The report analyzes the availability and affordability of coverage for workers' compensation insurance in Florida for the calendar year 2006 and concludes that Florida is the largest market dominated by private market insurers (as compared to state sponsored residual market entities such as those in New York and California).
In addition, the Office approved an overall rate reduction of 18.4 percent, effective Jan. 1, 2008, marking the fifth consecutive year of workers' compensation rate decreases. The newest rate reductions will give Florida businesses a cumulative decrease of 51.4 percent since legislative reforms were enacted in 2003.
"The 2007 report provides additional evidence that the Florida Legislature's reforms continue to be effective," said Insurance Commissioner Kevin McCarty. "More important, reductions in workers' compensation rates show that the state of Florida is committed to being a good place to do business."
The report highlighted other favorable trends in Florida's workers' compensation market: Overall workers' compensation claim frequency is on the decline, which continues to offset any increases in claim severity costs; companies are performing well in their underwriting, and the Florida Workers' Compensation Joint Underwriting Association, the insurer of last resort, had only $37.3 million in written premium in 2006 - less than 1 percent of the Florida market. Through November 2007, written premium had declined further to $19.2 million.
Florida also welcomed five new workers' compensation writers in 2006; the five companies are domiciled in Florida, Delaware, Iowa, New York and Wisconsin - another indication of the vitality of the Florida marketplace.
The report is prepared pursuant to requirements of Section 627.211(6), Florida Statutes and fulfills the requirements of Section 627.096, which requires the Office to provide comprehensive information to assist in the review of workers' compensation rate filings.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. Business units within the Office are organized based on regulatory expertise and include the areas of life and health, property and casualty, specialty lines and other regulated insurance entities. It is within the Office that the mission of public protection is implemented through regulatory oversight of insurance company solvency, policy forms and rates, market conduct performance and new company entrants to the Florida market.
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