Tennessee employers, employees and communities will benefit from rate decrease
NASHVILLE – Continuing a trend of savings for Tennessee employers and workers, workers’ compensation insurance premiums are likely to decline for most businesses in 2020 for the seventh consecutive year.
Since reforms of Tennessee’s workers’ compensation system began in 2014, loss cost reductions of over 52% have been approved, representing substantial savings for Tennessee employers. The reduced loss costs are also impacted by Tennessee employers seeing fewer significant workplace injuries.
“The continued decline in workers’ compensation premiums highlights Tennessee’s focus on creating an environment where businesses can grow, employees can prosper, and our state can continue to attract companies and high-paying jobs,” said Gov. Bill Lee.
Tennessee Department of Commerce & Insurance Commissioner Hodgen Mainda recently approved a 7.1% overall loss cost decrease for 2020 on Nov. 20. The order can be found here.
“These reductions are great news for Tennessee employers, employees and our rural communities,” Mainda said. “The reductions mean employers may now have more money to invest into their businesses and employees, which will, in turn, benefit local communities and continue to enhance the Volunteer State’s ability to recruit companies and talent.”
This latest reduction will become effective March 1, 2020.
Insurance carriers combine the National Council on Compensation Insurance loss cost filings with company experience and expenses to develop full insurance rates.
About the Tennessee Department of Commerce and Insurance Protecting Tennesseans through balanced oversight of insurance and regulated professions while enhancing consumer advocacy, education and public safety. Our divisions include the Tennessee State Fire Marshal’s Office, Insurance, Securities, Regulatory Boards, Tennessee Law Enforcement Training Academy, Tennessee Emergency Communications Board and TennCare Oversight.