NCCI Proposes 5.6% Workers' Comp Loss Cost Decrease for Virginia, Targeting April 2027
Case INS-2026-00031 asks the Virginia SCC Bureau of Insurance to approve advisory loss cost reductions, with the assigned risk pool targeted for a deeper 8.2% cut as eight straight years of frequency improvement hold steady.
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The National Council on Compensation Insurance submitted a workers' compensation loss cost and rating value revision to the Virginia State Corporation Commission's Bureau of Insurance, requesting an advisory loss cost reduction averaging 5.6% for the voluntary market. The filing, designated Case INS-2026-00031 and addressed to Virginia Insurance Commissioner Scott White, carries a proposed effective date of April 1, 2027, according to the Virginia SCC's Bureau of Insurance.
The assigned risk pool is targeted for a steeper reduction: NCCI's filing proposes an overall average decrease of 8.2% in assigned risk market rates, a materially deeper cut than the voluntary market figure. The gap reflects different experience patterns between the standard and residual markets, a distinction the filing does not collapse into a single composite number.
The proposed loss costs were developed using premium and loss experience measured through year-end 2024, drawing on data from Policy Years 2022 and 2023. The filing indicates that Virginia's lost-time claims relative to earned premiums have generally declined when viewed over the most recent eight-year period. Notably, the loss level observed in Policy Year 2022 was consistent with that observed in Policy Year 2023, suggesting the favorable frequency trend has reached a stable plateau rather than continuing to drop or rebounding.
The Virginia SCC's Bureau of Insurance is responsible for reviewing and acting on NCCI advisory loss cost filings for the state. Virginia is an advisory loss cost state: NCCI publishes the benchmark, and individual carriers file their own loss cost multipliers with the SCC to determine the rates they charge policyholders. An approved change in the advisory loss cost level requires carriers to assess whether their current multipliers remain actuarially and competitively appropriate against the new benchmark.
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