WORKERS' COMPENSATION RATES DECREASE FOR 10TH CONSECUTIVE YEAR
Phoenix, AZ –The Arizona Department of Insurance and Financial Institutions (DIFI) has reviewed the annual National Council on Compensation Insurance (NCCI) rate filing reflecting a 9.1% reduction in Workers' Compensation rates. The decrease, which will apply to all policies effective on or after January 1, 2025, continues 11 separate rate decreases for Arizona employers in the past 10 consecutive years.
Recent data show there were approximately 150,000 Workers' Compensation policies written in Arizona by over 330 different insurers. These policies generated approximately $890,000,000 in premiums. Arizona's lost-time claims relative to premium declined in years 2021-2023, as did both medical average cost per lost-time claim and indemnity average cost per lost-time claim.
“I am pleased to see that employers, large and small, in the State of Arizona are continuing to sustain safe work environments as this leads first to the safety of workers and then results in the continued cost decrease of Workers' Compensation insurance in the state," said DIFI Director Barbara Richardson.
The NCCI, a licensed advisory organization and statistical agent, collects data, analyzes industry trends, and prepares Workers' Compensation rate filings for Arizona and many other states. The organization annually collects data about the Workers' Compensation market in Arizona and submits recommended rates to DIFI for review. NCCI's recommended rates are based on claims volume, claims utilization, workforce, and wages, as well as any changes in rules or legislation.
"It's encouraging to see a continued downward trend in the frequency and severity of Workers' Compensation claims,” said Tom Zuppan, DIFI Property and Casualty Supervisor. "Arizona continues to have a very competitive Workers' Compensation market with numerous insurers writing in Arizona."
###
Our Mission: Protect consumers, provide certainty on regulatory matters and perform with efficiency and integrity as good stewards of taxpayer resources.
DIFI Public Information