Workers Compensation Insurance Rates Continue to Fall
The industry marks its twelfth consecutive year of underwriting profit as premium rates decline across the United States.
Updated on Oct. 20, 2026 in Employment
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Workers compensation premium rates are trending downward as the insurance industry enters its twelfth straight year of underwriting profit. Analysts project net written premiums will decrease by 0.7% throughout 2026.
Why it matters
Market base rates are falling across the industry, providing businesses with opportunities to lower costs through improved safety records. Employers are incentivized to prevent minor injuries to reduce their claim frequency and insurance premiums.
Net written premiums are forecast to fall 0.7% in 2026 before remaining broadly flat through 2028. Additionally, Minnesota average pure premium rates for 2026 are 44% lower than they were in 2004.
The players
OSHA
The Occupational Safety and Health Administration is the federal agency responsible for setting and enforcing standards to ensure safe working conditions.
The details
Insurance pricing relies heavily on an experience modification factor, which compares actual claims against expected claims for businesses of similar size. Employers maintaining a factor below 1.0 receive a premium credit, while those facing OSHA penalties for violations may see impacts on their insurance standing.
Timeline
2004 serves as the baseline for Minnesota premium rate comparisons.
2026 is the target year for the forecast net combined ratio of 92.7.
January 1, 2027, marks the implementation date for a 3.8% reduction in Minnesota assigned risk plan premiums.
2028 is the final year of the current flat premium rate forecast period.
Macro View
The Occupational Safety and Health Act's penalty structure provides the regulatory ceiling for workplace safety compliance which directly influences employer insurance modifiers. This story follows the long-term financial patterns established by compliance standards set under the act.
Businesses that maintain high safety standards can lower their operational expenses by securing premium credits through their experience modification factors. Conversely, incurring OSHA penalties for serious violations can increase liability and result in higher coverage costs for employers.
The takeaway
Maintaining a clean safety record is a practical strategy for businesses to mitigate insurance costs during this period of market decline. Employers should verify their current experience modification factor to ensure they are capturing available premium credits.
What happens next
Minnesota assigned risk plan premiums are scheduled to decrease by 3.8% on January 1, 2027.
Further reading
For broader context on current hiring and workplace trends, visit the United States Employment section.
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Do you trust that your workplace safety record fairly impacts your business insurance premiums?
