For the third year in a row, the National Council of Compensation Insurers has filed to the Florida Office of Insurance Regulation a proposed rate drop. If approved by Florida’s Insurance Commissioner, rates would drop 5.4% on average effective January 1, 2020.
That’s great news, but NFIB’s Executive Director in Florida says that dropping rates is masking the problem of unrestricted attorney’s fees in the Workers Compensation system, and that the legislature still needs to place a cap on their rates. “It’s welcome news to be sure”, said Herrle, but attorneys fees are taking a bigger and bigger share of our premium every year.”
Rates are dropping, Herrle contends, principally because of increased wages and record high-employment which results in more premium going into the system then ever before. “Insurance principal number one: spreading risk reduces the cost for all.” Said Herrle
