Maine businesses could see significant savings on workers’ compensation insurance this year after the state approved a 9.6% average reduction in loss costs, the Maine Bureau of Insurance announced Tuesday.
The decrease, approved by Superintendent of Insurance Bob Carey, will take effect April 1 for new and renewing policies. If fully adopted by insurers, the change could result in an estimated $27 million in savings for employers statewide.
Wide-ranging impact across industries
The approved filing from the National Council on Compensation Insurance (NCCI) reflects lower projected losses and benefit payments based on recent claims experience. Loss costs are a key component in determining workers’ compensation premiums, and the 2025 reduction varies by industry — from 6.5% to 10.7%.
“The NCCI filing will lower workers compensation premiums for most employers in the state,” Carey said in a statement.
However, not all businesses will see decreases. Employers with claims experience that differs significantly from industry averages may face different premium outcomes.
Among largest drops in the country
Maine’s 9.6% average cut is one of the largest among the 38 states that use NCCI’s services, according to the bureau. NCCI, an advisory rating organization, provides loss cost data that insurers use in developing their own rates.
While the market is competitive, insurers in Maine must still submit rate filings — including expense and profit factors — to the Bureau of Insurance for review and approval.
The approved loss costs offer a benchmark, but actual premiums paid by businesses may vary based on the insurer and the employer’s claims history.
