The Tennessee Department of Commerce and Insurance (TDCI) has announced that workers’ compensation insurance premiums will decline for most Tennessee businesses in 2024 for the 11th consecutive year, effective March 1.

Last month, TDCI Commissioner Carter Lawrence signed the order approving a 9.4% percent overall loss cost decrease for the voluntary market on new and renewal policies.

NFIB State Director Jim Brown said, “This is tremendous news again for Tennessee’s small businesses, many of which are struggling with a challenging labor market and persistent inflation. Tennessee’s loss cost multiplier had declined more than 70% since the 2014 reforms were enacted.”

“NFIB commends our state lawmakers, the Bureau of Workers’ Compensation (BWC) and the Department of Commerce & Insurance for their ongoing work to improve the workers’ compensation market and support for injured workers.”

“The continued insurance premium decrease bolsters Tennessee’s pro-business climate and keeps our economy strong,” said Governor Bill Lee. “Lowered premiums mean business owners have the opportunity to reinvest in their companies and better serve their employees.”

A copy of TDCI’s order can be found here. Insurance carriers combine the National Council on Compensation Insurance (NCCI) loss cost filings with company experience and expenses to develop insurance rates.

“Tennessee’s workforce will benefit from these loss cost reductions because they are the result of decreases in lost time claim frequency and more stable claims costs,” said Commissioner Lawrence. TDCI noted Tennessee employers have reported fewer significant workplace injuries, which have contributed to the reduction in loss costs. NFIB encourages small businesses to continue to improve their workplaces by utilizing the BWC’s new REWARD program.

Brown added that the state’s recent analysis shows marked improvement for injured workers relative to treatment and returning to work. According to the BWC, approximately 72% of injured workers returned to work after their injury and settlement in post-reform cases, compared to 61% in pre-reform cases.