Connecticut businesses will see workers’ compensation insurance premiums decrease an average of 3.8% next year, after the state’s insurance commissioner has approved rate reductions that take effect Jan. 1, 2026. The decrease marks the 13th consecutive year of rate reductions for Connecticut employers, though the decline is smaller than those approved in recent years. Insurance […]
Connecticut businesses will see workers' compensation insurance premiums decrease an average of 3.8% next year, after the state's insurance commissioner has approved rate reductions that take effect Jan. 1, 2026.
The decrease marks the 13th consecutive year of rate reductions for Connecticut employers, though the decline is smaller than those approved in recent years.
Insurance Commissioner Andrew N. Mais signed the order Monday, accepting rate proposals from the National Council on Compensation Insurance Inc. that will lower premiums for most Connecticut employers.
The approved changes affect both the voluntary insurance market, where most businesses purchase coverage, and the assigned risk market for employers who cannot obtain coverage through standard channels. Assigned risk rates will decrease 0.4%.
The 3.8% reduction represents the expected statewide decrease in premiums collected based on approved loss costs, according to the Connecticut Insurance Department.
However, actual premium changes will vary for each business depending on their insurance carrier's loss cost multiplier, which accounts for the company's expenses, profit margins and other factors such as taxes, licenses and fees.
Individual insurers' rate changes will also depend on their mix of business, the classification codes they write and their overall loss performance, state officials said.
Not all employers will see premium decreases, the department cautioned. Many factors influence final premiums, particularly an employer's actual loss experience and claims history.
Manufacturing companies will see the largest reductions in loss costs, with voluntary market rates dropping 5.6% and assigned risk rates falling 2.3%. Contracting businesses will see voluntary rates decline 4.9%, while goods and services companies face a 4% reduction.
The lone exception is the office and clerical sector, which will experience loss cost increases of 1.3% in the voluntary market and 4.9% in assigned risk coverage.
The rate changes are based on Connecticut loss experience from policy years 2022 and 2023, according to NCCI's September filing with the insurance department.
The long-term decline in workers' compensation rates reflects sustained improvements in workplace safety and a continued decrease in workplace injuries and filed claims across Connecticut, the department says.
"The department's staff determined that overall cost levels are decreasing for the voluntary market and the assigned risk rates," the order states. Department staff reviewed NCCI's assumptions and "concluded the proposed voluntary loss cost and assigned risk rate changes in this filing are appropriate."
The 3.8% decrease continues the downward trend. The state approved a 6.1% decrease in voluntary market loss costs for 2025 and a 9.8% decrease for 2024.
The insurance department provided a 30-day public comment period, but received no public comments and did not hold a public hearing on the proposal.
