Correction: A earlier version of this story had the wrong percentage in the headline. Insurance Journal regrets the error.
New Jersey Commissioner of Banking and Insurance Justin Zimmerman has approved a 6.9% statewide average decrease in rates for workers’ compensation and employers’ liability insurance.
The new rates will apply to new and renewal policies effective January 1, 2025.
The New Jersey Compensation Rating and Inspection Bureau announced the approval of the rate filing it submitted in September on behalf of workers’ compensation insurers .
According to the rating bureau, the data for the latest three complete policy years supported a premium level adjustment of +4.0% due to experience. A trend factor of 鈥�13.4% is included to recognize changing exposures and losses. The effect of changes to the minimum and maximum weekly benefits resulted in a premium adjustment factor of +0.9%.
The average rate decreases vary by classification including -5.8% for manufacturing, -5.9% for contracting, -7.5% for goods and services, and -9.6% for office/clerical.
Of the total 550 classifications in the rating manual, 128 will experience increased rates, eight will experience no change, and 407 classes will experience decreased rates. Seven have no rate assigned. In cases where rate increases are called for, no individual policyholder will receive an increase exceeding 15%.
Effective January 1, 2025, the maximum weekly benefit with respect to all types of injuries, except permanent partial disabilities, will be changed from $1,131 to $1,159. The minimum weekly benefit will be changed from $302 to $309.
In cases involving permanent partial disabilities, the present maximum weekly benefits ranging from $302 to $1,131 (varying on the basis of duration of disability) will be changed to $309 and $1,159, respectively. The minimum weekly benefit for permanent partial injuries will remain at $35.
The rate cut for 2025 continues the downward trend of the past few years. Rates were cut an average 3.9% for 2024; 6.1% for 2023 and 5.3% for 2022.
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