NCCI Seeks IL Work Comp Premium Increase (10/11)

According to an October 2011 release from the Illinois Trial Lawyers Association (ITLA), the National Council on Compensation Insurance, Inc. (NCCI) has requested a full 3.5% rate hike in insurance premiums for Illinois employers, effective in 2012. This is despite claims that the recent Illinois workers' compensation reforms would act to reduce workers’ comp insurance rates by 8.8%. The NCCI is an advisory group funded mainly by insurance companies and with a vast majority of its board members being insurance company executives.

"During negotiations for this law, the insurance industry made assurances that there would be a decrease in workers’ compensation insurance rates for businesses in Illinois," said ITLA President Jerry A. Latherow. "It’s a shame that after this package became law, they are going back on their word and instead raising the rates for businesses during this difficult economic time."

Latherow further stated, "I call on the Department of Insurance to oppose the request of the insurance industry."

Many provisions of the recent workers' compensation changes, signed into law this summer, will drastically affect Illinois workers and their rights to receive fair and just compensation when injured on the job. The goal of the reform was to reduce costs and workers' benefits so that employers would see a reduction in their workers' compensation insurance premiums and be able to spend more money on hiring new employees or investing in business expansion throughout the State. Unfortunately, while the reform did decrease workers' benefits that the insurance carriers would have to pay, the insurance companies are not passing on those savings to the employers as previously promised.