The Tennessee Department of Commerce and Insurance (TDCI) has announced that workers’ compensation insurance premiums will decline for more businesses in the state this year.
“We are proud to announce yet another rate decrease for workers’ compensation insurance premiums,” said Governor Bill Lee. This marks the 12th consecutive year of rate reductions. “Lower premiums allow business owners to have the flexibility they need to re-invest in their companies.”
On December 27, 2024, TDCI Commissioner Carter Lawrence approved an order for a 3.6% overall loss cost decrease in the voluntary market, effective March 1, 2025. The reduction applies to new and renewal policies.
The rate decrease enables insurance carriers to combine National Council on Compensation Insurance (NCCI) loss cost filings with their own company experience and expenses to calculate premiums for the upcoming year.
Since Tennessee implemented workers’ compensation system reforms in 2014, employers in the state have experienced significant savings through consistent loss cost reductions.
“The loss cost reduction can be contributed, in part, to safer workplaces where workers are receiving fewer injuries on the job,” said Commissioner Lawrence. “These reductions indicate a healthier workplace for Tennesseans as they result from decreases in lost time claim frequency and more stable claims costs.”
TDCI is responsible for licensing and regulating industries and promoting individuals and small businesses through fair marketplaces, public safety and consumer responsibility.
