Massachusetts Insurance Commissioner Michael Caljouw has denied a 7.1% rate increase request submitted by the Workers’ Compensation Rating and Inspection Bureau of Massachusetts.
The bureau sought the increase to address rising claim costs, inflationary pressures, and other factors impacting the workers’ compensation insurance market in the state.
Caljouw’s ruling challenged several key assumptions in the bureau’s filing, including proposed adjustments for loss development and trend factors. According to the report, the Commissioner found the bureau’s data and methodology insufficient to justify the requested increase.
The rate increase request also met opposition from other regulatory bodies. The attorney general’s office recommended a 6.2% rate decrease, citing more conservative assumptions and lower projected claim costs. Meanwhile, the State Rating Bureau within the Massachusetts Division of Insurance proposed decreases ranging from 2.1% to 3.1% for standard classifications and from 6.7% to 7.6% for federally regulated jobs and industries.
In rejecting the rate increase, Caljouw concluded that existing workers’ compensation rates are not excessive. He also declined to approve the proposed rate decreases from the attorney general’s office and the State Rating Bureau, effectively maintaining current rates.
The Commissioner’s decision is projected to save Massachusetts businesses nearly $80 million by preventing the proposed rate increase. This follows a 14.6% reduction in workers’ compensation rates approved in 2024, which was estimated to save businesses approximately $87 million.
Massachusetts Governor Maura Healey praised the decision, saying it will relieve financial pressures on businesses facing rising costs amid broader economic challenges, the report said.
“With today’s action, we are saying no to any increased workers’ compensation rates for our companies,” Healey said, as quoted by Best Wire. “We are doing all we can to reduce business costs, which is why this week we also proposed major changes to lower energy costs and limit health deductibles for patients and small businesses.”
According to BestLink, the top writers of workers’ compensation insurance in Massachusetts in 2023 by direct premiums written were: A.I.M. Mutual Insurance Cos. (11.07% market share); Hartford Insurance Group (10.58%); Travelers Group (10.47%); Liberty Mutual Insurance Cos. (7.33%); and Zurich Insurance US PC Group (6.59%).
