Insurance Department Approves 6.8% Loss Cost Reduction

The Kentucky Department of Insurance approved a recommendation from the National Council on Compensation Insurance to reduce loss costs by an average of 6.8% across all class codes. “The overall decrease shows the continuing decline in claim severity and frequency,” the department said in a statement. “Wage and medical inflation have the potential to affect historical patterns and were considered, but it is not anticipated to create increased premiums due to the declining claim trend.” Loss costs are an average compensation for lost wages based on the level of disabil...