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Workers' compensation rates keep falling in Q2

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Workers' compensation rates keep falling in Q2

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U.S. states employ a variety of rate regulation mechanisms, including prior approval, modified prior approval, file and use, and use and file. Some states do not require explicit regulatory approval prior to insurers using new rates. This analysis is based on when rate filings are "disposed" by state regulators and does not take into account when those new rates became effective for new and renewal business. In some instances, a new rate may have been in effect prior to the month the filing was approved by the regulator.

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Workers' compensation rates continued to fall in the second quarter of 2022.

Texas Mutual Insurance Co. experienced the most significant single rate change in terms of overall premiums during the quarter. A 7.6% decrease approved by the regulators in the Lone Star State is expected to decrease the company's overall premiums by $71.1 million. The new rate went into effect July 1, for both new and renewal businesses and impacts around 66,000 policyholders.

Rate decreases in Texas, Louisiana

Texas regulators approved 239 rate cuts in the second quarter, the most by any state. Those reductions are expected to lower the industry's overall premiums by $129.9 million. Insurers in Louisiana may see their workers' comp premiums written fall by $45.9 million from 129 rate reductions disposed during the period.

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Liberty Mutual decreases rates

Liberty Mutual Holding Co. Inc., the sixth largest workers comp' insurer, received approval for 65 rate reductions across eight states during the quarter. The reductions are expected to reduce the group's overall premiums by $17.0 million.

SNL Image* Download a template to analyze rate changes for selected entities, state or type of insurance over a selected time period.
* Read about the rate changes in the commercial auto sector.

W. R. Berkley boosts rates

At the other end of the spectrum, W. R. Berkley Corp. received approval for 12 rate hikes in the second quarter, which stand to increase the group's overall premiums by nearly $5 million.

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