NY Workers’ Compensation Rates Anticipated to Decrease in 2026
The NY Compensation Insurance Rating Board (NYCIRB) recently voted to file for a 13.2% decrease in overall workers’ compensation loss costs. These loss costs are what insurance companies use to develop the workers’ compensation (WC) rates that employers see on their policies. NYCIRB will file their request with the NYS Department of Financial Services by May 15, 2025. If approved, 2026 will mark the 10th consecutive year of decreases in WC loss costs.
It is important to note that not all employers will see a 13.2% decrease. This is an overall reduction, which means that individual WC class codes may see a decrease, an increase, or remain unchanged. NYCIRB determines which class codes are adjusted based on a review of all claims data submitted by the insurance industry, legislative efforts, and other contributing factors.
Some of the components driving the recommended reduction include:
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Decrease in claim severity and frequency
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Improved workplace safety and training
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Effective claims management
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Employer proactiveness
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Wellness initiatives
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Technological advances that improve job and workplace safety
At the same time, compensation benefits for injured employees—as well as medical reimbursements to providers—have increased.
This is certainly good news for both employers and employees. For employers, any decrease in WC insurance premiums can help offset increases in other lines of insurance (e.g., property, auto), which have experienced the opposite trend over the past few years. These savings can be reinvested into safety initiatives, employee training, technology, and more.
For employees, working in a safe environment and avoiding injury is the ultimate goal. Every worker wants to return safely to their families and loved ones at the end of the day. However, should an injury occur, data suggests that prompt medical treatment and effective claims management are helping to reduce the length of time employees are out of work.
If approved, the decrease will apply to all policies with an effective date of October 1, 2025, or later.
As an employer, have you seen your workers’ compensation premiums follow
a similar pattern? If not, have you taken a close look at why? The team at CH Insurance is available to sit down with you and conduct an analysis of your WC program. Just give us a call.
