FL Work Comp | OIR Releases a Contingent Approval of 14.5% Rate Increase

On September 27, 2016 the Florida Office of Insurance (OIR) issued an Order for the workers’ compensation rate filing submitted by National Council of Compensation Insurance (NCCI). The requested rate increase of 19.6%, by NCCI, was DISAPPROVED, but a contingent approval to an overall combined average statewide rate increase of 14.5% was recommended.

“Approval of the revised rate increase is contingent on NCCI amending the filing to include the recommended changes stipulated within the Order. As ordered by the Office [OIR], the revised rate increase would become effective on December 1, 2016 for new and renewal business, with no change in rate for current in-force policies,” says the Florida Office of Insurance Regulation.

LassiterWare anticipates NCCI adhering to the OIR requests by the October 4 deadline and the OIR to issue a final Order formally approving the 14.5% increase. It is to be noted that in its Order, the OIR advised it is willing to consider additional data and analysis from NCCI before January 13, 2017 to demonstrate a further increase is necessary.  If acted upon by NCCI, further rate increases in 2017 could be approved by the OIR.


Two key Florida Supreme Court decisions account for 85% of the 14.5% increase contingently approved by the OIR. On April 28, 2016, the Court issued their opinion in the case of Castellanos v. Next Door Company which found the mandatory attorney fee schedule in Section 440.34, Florida Statutes, unconstitutional as a violation of due process.  The OIR  attributes a 10.1% increase in workers’ compensation rates in light of this decision and a 2.2% increase in light of the June 9, 2016 decision by the Court in Westphal v. City of St. Petersburg which reinstated a 260-week limitation on temporary total disability benefits after finding the 104-week limitation unconstitutionally violated an injured worker’s right of access to courts.


LassiterWare invites you to review a recent webinar that was held to discuss the costs businesses will incur as a result of the recent high-profile rulings and rate increase, as well as proactive strategies that business owners can take to reduce the financial impact.

To view this recording on our website: CLICK HERE


LassiterWare stands ready to assist Florida businesses with minimizing the impact of this decision on their day to day operations by way of our exclusive service offerings:

Our systematic approach for managing costs will not fall short in delivering exceptional workers’ compensation programs. We want to thank you for continuing to allow for us to Serve You First.

For additional questions, please do not hesitate to reach out to any of our LassiterWare representatives.