Workers’ Compensation
The Property & Casualty Section of the Division of Insurance handles such duties as reviewing and approving workers’ compensation policy rates, language, composition and format, as well as collecting quarterly and annual financial statements from private workers’ compensation insurers.
Changes in Voluntary Insurance Loss Costs and Assigned-Risk Market Rates, Effective March 1, 2025:
Commissioner
Scott J. Kipper has approved the annual workers' compensation
voluntary loss-cost and assigned-risk rate filing from the National
Council on Compensation Insurance ("NCCI"). Filing 124038, effective March 1, 2025, provides for
an overall increase of 6.5% in the Nevada workers’ compensation
voluntary-market loss-cost level and an overall increase of 6.3% in the
workers’ compensation assigned-risk rate level.
The indications in this filing are based predominantly on the experience of Policy Years 2020, 2021, and 2022 (i.e., for policies written during those years). NCCI notes that “Policy Year 2022 experience is particularly unfavorable due to a considerable influx of large losses as well as economic impacts coming from the post-pandemic recovery, such as a large increase in worker wages not completely reflected in the capped payroll used for premium.” However, the proposed increase is more modest than would be derived from looking at the 2022 experience alone. NCCI notes that “These underlying factors influencing Policy Year 2022 are not expected to be fully predictive of conditions likely to prevail in the proposed effective period [of the filing]. As a result, the experience in Policy Year 2022 was given less weight than the other experience period years.”
This is the first overall increase in workers’ compensation loss costs since September 2020. Nevada has had decreases in workers’ compensation loss costs since that time of -5.2% effective 3/1/2021, -13.6% effective 3/1/2022, -5.2% effective 3/1/2023, -3.3% effective 9/1/2023, and -1.8% effective 3/1/2024. With filing 124038, loss-cost levels have returned to approximately the levels of early 2022, which was still a time period when workers’ compensation insurance was highly affordable to Nevada employers overall.
The tables below illustrate by industry group the proposed average changes arising from this filing.
Voluntary Loss-Cost Change
Industry Group |
Average Change Due to Filing 124038 |
Contracting |
+5.3% |
Goods & Services |
+8.8% |
Manufacturing |
+6.3% |
Office & Clerical |
+3.9% |
Miscellaneous |
+5.0% |
Overall |
+6.5% |
Assigned-Risk Rate Change
Industry Group |
Average Change Due to Filing 124038 |
Contracting |
+5.1% |
Goods & Services |
+8.6% |
Manufacturing |
+6.1% |
Office & Clerical |
+3.7% |
Miscellaneous |
+4.8% |
Overall |
+6.3% |
Impacts
to each individual classification of business will vary based on that
classification’s recent experience. The range of impacts would be between
-20.0% and +28.8%. The majority of classifications would receive modest increases as a result of this filing.
The
overall loss-cost decrease for the voluntary market is driven by the
following main considerations:
● +3.7%
impact due to combined changes in loss experience and changes in loss development. During the time period being analyzed, declines in claim frequency have continued throughout the country, including in Nevada. However, the decline in frequency has recently slowed down. In the meantime, the average cost per lost-time claims has increased for indemnity claims, while remaining stable for medical claims.
● +3.6% impact due to revised trend assumptions. While the prospective expectation remains that workers’ compensation losses will continue to decline in the long term, the decline is expected to be more modest than previously projected. NCCI has revised its prospective annual loss-ratio trend for indemnity losses from -3.0% to -2.0% and for medical losses from -4.5% to -4.0%.
● -1.2% impact due to benefit changes. This reflects impact due to changes in the Medical Fee Schedule issued by the Division of Industrial Relations, effective February 1, 2024 (+0.1% overall impact), as well as the adoption of the 2024 Actuarial Annuity Table for lump-sum payments of permanent partial disability claims, effective July 1, 2024 (-1.3% overall impact). It is noteworthy that, as in prior years, there have been modest increases to workers’ compensation medical benefits. Therefore, benefit adequacy is not being eroded.
● +0.4% impact due to changes in loss-adjustment expenses, which increased slightly for Nevada, from 18.6% of losses to 19.1% of losses.
For the assigned-risk market, in addition to the aforementioned +6.5% impact to loss costs, there is a further impact of approximately -0.2% due to changes to assumptions pertaining to expenses on the assigned-risk market.
Specifically, the Assigned-Risk
Loss-Cost Multiplier, which establishes the multiplicative difference between
the voluntary-market loss costs and the assigned-risk rates, is proposed to
decrease slightly from 1.502 to 1.499.
Adoption of Revised Loss Costs: The revised loss costs must be adopted on their effective date and applied to all policies on or after the effective date.
Insurers need only file new loss-cost multiplier worksheets if they are changing their loss-cost multipliers. Otherwise, the current loss-cost multipliers will continue to apply.
Large Deductible Workers’ Compensation Program Filing Requirement: As outlined in Bulletin 00-003, insurers are required to file each risk written with a Large Deductible ($25,000 or greater). Form NDOI-1112 (Revised February, 2025), the Informational Filing for Large Deductible Workers’ Compensation, must be submitted to the Commissioner for acceptance within 60 days of issuing the applicable Large Deductible policy.
For information regarding self-insured associations and self-insured employers, please see the Division of Insurance’s Self-Insured Section.
For information regarding employer workers’ compensation coverage compliance, claims handling and complaints, please contact the Division of Industrial Relations.
To report workers’ compensation fraud, please contact the Attorney General’s Workers' Compensation Fraud Unit.
Workers’ Comp Resources
Forms and Bulletins
Rate Filings / Loss-Cost Expense Worksheet
Workers’ Compensation Issues: Bulletin 00-002
Workers’ Compensation Deductible Programs: Bulletin 00-003
Terrorism Coverage Cannot be Excluded From Nevada Workers’ Compensation Insurance Policies: Bulletin 03-002
2025 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2025
Assigned-Risk Rates and Rating Values Effective 3/1/2025
2024 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2024
Assigned-Risk Rates and Rating Values Effective 3/1/2024
2023 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2023
Assigned-Risk Rates and Rating Values Effective 3/1/2023
2022 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2022
Assigned-Risk Rates and Rating Values Effective 3/1/2022
2021 NCCI Loss Costs and Assigned-Risk Rates
To find the NCCI filing documentation for the filing effective March 1, 2021, follow the steps below.
1. Go to SERFF Filing Access at https://filingaccess.serff.com/sfa/home/nv.
2. Click the "Begin Search" button at the top left-hand corner of the screen.
3. You will see a user agreement. Click on "Accept" in the lower center of the screen.
4. Within the Filing Search window, input the following within the field called "SERFF Tracking Number": NCCI-132592485
5. Click the "Search" button in the lower center of the screen.
6. You will see an entry for one result from "National Council on Compensation Insurance, Inc." Click anywhere within the row displaying that result.
7. You will see a box entitled "Filing Summary". Within that box, navigate to the section entitled "Attachments". From there, you will be able to download PDF files containing the approved loss costs and assigned-risk rates.
The NCCI Circular: Approval of Voluntary Loss Costs, Assigned-Risk Rates, and Rating Values to Be Effective March 1, 2021 - is contained in the file entitled "NV-2020-04.pdf".
The Advisory Loss Costs and Rating Values Effective 3/1/2021 are contained on pages 23-29 of the file entitled "NV 3-1-2021 Filing.pdf".
The Assigned-Risk Rates and Rating Values Effective 3/1/2021 are contained on pages 31-37 of the file entitled "NV 3-1-2021 Filing.pdf".
2020 NCCI Loss Costs and Assigned-Risk Rates
NCCI updated its loss costs and assigned-risk rates effective September 1, 2020, to account for revisions to the Actuarial Annuity Table promulgated by the Division of Industrial Relations to reduce the discount rate for calculating permanent partial disability lump-sum benefits from 2.98% per annum to 1.46% per annum. To find the NCCI filing documentation for the filing effective September 1, 2020, follow the steps below.
1. Go to SERFF Filing Access at https://filingaccess.serff.com/sfa/home/nv.
2. Click the "Begin Search" button at the top left-hand corner of the screen.
3. You will see a user agreement. Click on "Accept" in the lower center of the screen.
4. Within the Filing Search window, input the following within the field called "SERFF Tracking Number": NCCI-132454994
5. Click the "Search" button in the lower center of the screen.
6. You will see an entry for one result from "National Council on Compensation Insurance, Inc." Click anywhere within the row displaying that result.
7. You will see a box entitled "Filing Summary". Within that box, navigate to the section entitled "Attachments". From there, you will be able to download PDF files containing the approved loss costs and assigned-risk rates.
The Advisory Loss Costs and Rating Values Effective 9/1/2020 are contained on pages 15-21 of the file entitled "NV 9.1.2020 Law-Only Filing.pdf".
The Assigned-Risk Rates and Rating Values Effective 9/1/2020 are contained on pages 23-29 of the file entitled "NV 9.1.2020 Law-Only Filing.pdf".
Advisory Loss Costs and Rating Values Effective 3/1/2020
Assigned-Risk Rates and Rating Values Effective 3/1/2020
2019 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 9/1/2019
Assigned-Risk Rates and Rating Values Effective 9/1/2019
Advisory Loss Costs and Rating Values Effective 3/1/2019
Assigned-Risk Rates and Rating Values Effective 3/1/2019
2018 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/15/2018
Assigned-Risk Rates and Rating Values Effective 3/15/2018
Advisory Loss Costs and Rating Values Effective 3/1/2018
Assigned-Risk Rates and Rating Values Effective 3/1/2018
2017 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2017
Assigned-Risk Rates and Rating Values Effective 3/1/2017
2016 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2016
Assigned-Risk Rates and Rating Values Effective 3/1/2016
2015 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2015
Assigned-Risk Rates and Rating Values Effective 3/1/2015
2014 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2014
Assigned-Risk Rates and Rating Values Effective 3/1/2014
2013 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2013
Assigned-Risk Rates and Rating Values Effective 3/1/2013
2012 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2012
Assigned Risk Rates and Rating Values Effective 3/1/2012
2011 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2011
Assigned Risk Rates and Rating Values Effective 3/1/2011
2010 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2010
Assigned Risk Rates and Rating Values Effective 3/1/2010
2009 NCCI Loss Costs and Assigned-Risk Rates
Advisory Loss Costs and Rating Values Effective 3/1/2009
Assigned Risk Rates and Rating Values Effective 3/1/2009