BOSTON – Massachusetts businesses will save $75 million in a deal reached with the State Rating Bureau and the Workers Compensation Rating and Inspection Bureau, Attorney General Martha Coakley announced.
According to a statement, the deal prevents a proposed plan to increase workers’ compensation insurance rates by an average of 7.7 percent across the state. Commissioner of Insurance Joseph G. Murphy approved the settlement.
In January, representatives from Coakley’s office argued that the rate request was unjustified because it was based almost primarily on an increased profit load.
Rates for workers’ compensation insurance are set at least every other year in an administrative rate hearing before the commissioner of insurance. Massachusetts businesses are required to purchase workers’ compensation insurance to provide coverage for expenses and lost wages of workers injured on the job.
Through the industry trade group WCRIB, insurance companies, including giants Liberty Insurance, AIG, Traveler’s Insurance Co. and other insurers planned the proposed rate hike and sought approval from Murphy. •