Wisconsin companies will pay 8.4% less in worker’s compensation insurance rates starting Oct. 1, 2023, benefiting businesses around the state, the Wisconsin Department of Workforce Development reported. The latest reduction in premiums is expected to save Wisconsin employers some $148 million on policies starting on or after October 1, 2023.
The lower rates reflect Wisconsin employers’ attention to workplace safety for the benefit of workers and employers alike. Moreover, it’s a way for Wisconsin companies to stand out as they seek to attract and retain staff during a time of near-record low unemployment. The 2023 rate decrease, approved by the Wisconsin Office of the Commissioner of Insurance, marks the eighth year in a row worker’s compensation insurance premiums have declined in Wisconsin. The actual rates that inform premium amounts vary by employers based on factors such as injury risk exposure.
Worker’s compensation insurance rates are adjusted annually by a committee of actuaries from members of the Wisconsin Compensation Rating Bureau. This independent body examines and selects the methodology and trends that produce the proposed rate adjustment, which is then reviewed and approved by the Wisconsin Commissioner of Insurance. While the overall rate level will decrease by 8.4%, the impact to policyholders will vary based on specific circumstances.
“The continued decreases in worker’s compensation rates reflect the workplace safety practices that support a strong workforce in our state,” said Insurance Commissioner Nathan Houdek. “Employers doing business in Wisconsin can count on our competitive insurance marketplace for affordable, high-quality coverage for their business and employees.”
DWD’s Worker’s Compensation (WC) Division administers the state’s WC program through a collaboration with WCRB, OCI, Self-Insurers Council and the Worker’s Compensation Advisory Council, which is composed of representatives from management and labor and recommends WC law changes. Most employers in Wisconsin are legally required to have Worker’s Compensation insurance policies.