Florida approves 6.9% workers’ compensation rate decrease for 2026

19 Nov Florida approves 6.9% workers’ compensation rate decrease for 2026

Posted at 11:55h in 2025, Workers' Compensation by

Anita Byer

 

Florida employers will be paying less for workers’ compensation insurance next year. The Florida Office of Insurance Regulation approved a statewide overall average rate decrease of 6.9 percent for workers’ compensation insurance premiums. It will be the ninth consecutive year with a rate decrease. According to Florida Insurance Commissioner Michael Yaworsky, “this rate decrease directly translates to reduced operating costs for businesses, encouraging investment and growth throughout Florida’s economy.” The rate decrease will apply to new and renewal policies beginning January 1, 2026.

The 6.9 percent rate reduction was proposed by the National Council on Compensation Insurance (NCCI), a rating organization authorized to make rate filings on behalf of workers’ compensation insurance companies in Florida. The reduction was based on NCCI’s analysis of data from the two most recently available full policy years (i.e., 2022 – 2023) as of December 31, 2024. According to NCCI, the data supports the following changes to the components of the overall average rate level decrease.

  • Change in Experience, Development and Trend: 6.9% decrease.
  • Change in Benefits: 0.4% decrease.
  • Change in Production and General Expenses: 0.3% increase. Production expenses include commissions and costs associated with processing policies. General expenses primarily consist of salaries and overhead costs.
  • Change in the Profit and Contingency Provision: no change (0.0 percent). Florida workers’ compensation rates must be determined so that insurers can be expected to earn a reasonable rate of return. This filing proposes no change to the currently approved P&C provision.
  • Change in Loss-Based Expenses: 0.1% increase. These are expenses associated with the handling of workers’ compensation claims.

 

Overall Average Rate Level Change: 6.9 percent decrease.

NCCI also proposed an overall average rate level decrease of 14.3 percent for Federal classifications. These “F-classifications” refer to operations conducted on or about navigable waters for which benefit levels and related costs are determined by the United States Longshore and Harbor Workers’ Compensation Act, rather than individual state laws. Typical F-classifications include those covering ship builders and stevedores.

Please contact us to learn more about the upcoming workers’ compensation rate reduction.

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