Insurance premiums for worker’s compensation continue to decline
Insurance rates covering on-the-job injuries drop for 8th year in a row
Wisconsin companies will pay 8.4% less in worker’s compensation insurance rates starting Oct. 1, 2023, benefiting businesses around the state, the Wisconsin Department of Workforce Development reported.
The latest reduction in premiums is expected to save Wisconsin employers some $148 million on policies starting on or after October 1, 2023.
The lower rates reflect Wisconsin employers’ attention to workplace safety for the benefit of workers and employers alike. Moreover, it’s a way for Wisconsin companies to stand out as they seek to attract and retain staff during a time of near-record low unemployment. The 2023 rate decrease, approved by the Wisconsin Office of the Commissioner of Insurance, marks the eighth year in a row worker’s compensation insurance premiums have declined in Wisconsin. The actual rates that inform premium amounts vary by employers based on factors such as injury risk exposure.
The worker’s compensation program covers medical expenses and lost wages for employees injured on the job. The independent, nonprofit Workers Compensation Research Institute ranks Wisconsin tied with Iowa as the lowest of 18 states studied for the time employees spend away from work after an injury, thanks to strong health care networks and return-to-work programs that support a smooth transition back to the workplace.
“A work atmosphere built around worker well-being is the result of partnerships among employers, workers, and training providers,” said DWD Secretary-designee Amy Pechacek. “Wisconsin is committed to a workplace that is fair, just, and above all, safe. This approach benefits workers, their families and communities while supporting the competitiveness of employers statewide.”
Worker’s compensation insurance rates are adjusted annually by a committee of actuaries from members of the Wisconsin Compensation Rating Bureau. This independent body examines and selects the methodology and trends that produce the proposed rate adjustment, which is then reviewed and approved by the Wisconsin Commissioner of Insurance. While the overall rate level will decrease by 8.4%, the impact to policyholders will vary based on specific circumstances.
“The continued decreases in worker’s compensation rates reflect the workplace safety practices that support a strong workforce in our state,” said Insurance Commissioner Nathan Houdek. “Employers doing business in Wisconsin can count on our competitive insurance marketplace for affordable, high-quality coverage for their business and employees.”
DWD’s Worker’s Compensation (WC) Division administers the state’s WC program through a collaboration with WCRB, OCI, Self-Insurers Council and the Worker’s Compensation Advisory Council, which is composed of representatives from management and labor and recommends WC law changes. Most employers in Wisconsin are legally required to have Worker’s Compensation insurance policies.
Customers with questions about the law may contact DWD’s Worker’s Compensation Division by calling 608-266-1340 or visiting the DWD website. For questions about the rate development process, contact the WCRB at 262-796-4540 or online.
