Nov. 30—The Office of Superintendent of Insurance announced Monday it has approved a 5.5% decrease in loss costs for Workers' Compensation for policies renewing or issued on or after January 1, 2022.
The reduction is possible in part because of the continuing decrease in the frequency of claims, according to a news release. Officials said that reduction in claims reflects the commitment to safety by New Mexico employers and noted that loss costs have decreased for the seventh year in a row.
"After two years of employers facing challenges related to COVID, it was important for us to approve these cost reductions," Superintendent of Insurance, Russell Toal said in a statement. "These lower rates will help a large number of employers save money, which they can use to reinvest in their businesses."
Insurance companies use such loss costs to set Workers' Compensation rates, the office said.
Those costs make up the portion of the total insurance rate used to pay claims and claims adjustment expenses of injured workers covered by Workers Comp.
Average rate changes will vary by industry group, the office said.