Insurance Division Approves 1.9% Loss-Cost Reduction

The Colorado Division of Insurance approved the National Council on Compensation Insurance recommendation to reduce loss costs by 1.9% for policies incepting in 2016. The division on Wednesday said in a statement that 2016 will be the second consecutive year with no increase in loss costs, following 2015 when there was no change. In 2013 and 2014, the division increased loss costs a cumulative 7.8%. According to NCCI's State Advisory Forum for Colorado, average indemnity and medical costs are up, but frequency is down. The average indemnity claim severity increased 6.1% to $22,300 in 20...