The New Hampshire Insurance Department (NHID) has approved an average 6.1% reduction in voluntary workers’ compensation loss costs effective January 1, 2026.
The assigned risk pool for risks not insured in the voluntary market will see a reduction of 5.4%.
This marks the 14th straight year of workers’ compensation rate reductions for the state’s voluntary market, with a cumulative reduction exceeding 66% over this period, according to the department.
The approval came in response to a recommendation submitted by the industry rating organization, the National Council on Compensation Insurance (NCCI.
The decision comes after NHID approved a 5.6% reduction in voluntary loss costs for 2025.
Loss costs represent the portion of an employer’s insurance premium dedicated to covering claims costs for work-related injuries and are a key factor in determining rates and premiums in the voluntary market. All insurers writing voluntary workers’ compensation in New Hampshire must adopt the new loss costs, to which they can then adjust for their specific company expenses.
“Consistently lower loss costs are a strong indicator of safer work environments and faster recovery times for injured workers,” said Christian Citarella, chief property/casualty actuary for the NHID. “The continued decline in medical expenses, combined with proactive safety measures in workplaces across the state, are key drivers of these reductions.”
“The workers’ compensation market in New Hampshire continues to deliver positive results for employers, employees, and the overall economy,” said Insurance Commissioner DJ Bettencourt.
The NCCI filing for 2026 rates was based on premium and loss experience as of year-end 2024 from policy years 2021, 2022, and 2023. It shows that New Hampshire’s lost-time claim frequency continues to decline, while indemnity and medical average cost per case increased in the most recent policy year. As a combination of frequency and severity, loss ratios continue to decrease, driven by frequency declines.
According to NCCI, the nation’s workers compensation system remains healthy. The calendar year 2024 combined ratio for workers’ compensation was 86%, indicating underwriting profitability for the overall system. A combination of claim frequency declines and moderate benefit costs have contributed to reductions in overall workers’ compensation system costs, according to NCCI.
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Workers’ Compensation
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