Reduction could save Maine businesses $27 Million
AUGUSTA — Maine Superintendent of Insurance Bob Carey announced approval of the National Council on Compensation Insurance (NCCI) 2024 loss costs for Maine, which will lower workers’ compensation insurance loss costs an average of 9.6%. The loss costs will go into effect for new and renewing policies as of April 1, 2025.
“The NCCI filing will lower workers’ compensation premiums for most employers in the state,” Carey noted. “If all insurers fully adopt the decrease, Maine businesses could save approximately $27 million.”
Loss costs are based on prior experience and projected losses and benefit payments. The 9.6% decrease ranges from -6.5% to -10.7%, depending on the industry group. Most Maine businesses will see a reduction in their workers’ compensation premiums. However, some businesses may pay higher rates if their experience differs materially from the average.
Maine’s reduction in loss costs is one of the largest in the country for 2025, among the 38 states that utilize NCCI’s services. NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage in Maine. NCCI-approved loss costs are available to insurers to reference when filing their workers’ compensation rates with the Bureau of Insurance.
Maine has a competitive market for workers’ compensation insurance. Insurers may modify the NCCI loss costs and set their own expense and profit factors in developing rates, all of which are subject to review and approval by the Bureau of Insurance.
