MN Costs Reverse Trend, Increased 10% in 01

Workers' compensation costs increased 10 percent in 2001, after falling nearly in half from 1994 through 2000, according to a newly released report from the Minnesota Department of Labor and Industry (DLI). The Workers' Compensation System Report estimates cost rose to $1.44 per $100 of payroll in 2001, from $1.32 in 2000 (revised). The main reasons for this increase were: - Benefit payments increased. - Low investment-returns reduced insurers' earnings on invested premiums. - In a highly competitive environment, insurers reduced premiums to levels too low to cover benefits and other co...