Department Approves 8.8% Rate Cut

Average voluntary loss costs in Utah dropped 8.8% at the start of the month, the result of a sharp decrease in claim frequency that is also driving down medical and indemnity loss ratios. The rate recommendation from the National Council on Compensation Insurance, which took effect Dec. 1, shows claim frequency has been dropping since 2005. And those declines accelerated in 2013 and 2014. Claim frequency per $1 million of on-leveled, wage-adjusted premium dropped to 17.4 in 2014 from 19.6 in 2013. The rate fluctuated between 21.7 claims and 21.2 claims per $1 million in adjusted premium betw...