Connecticut Approves Workers' Comp Rate Cuts

Insurance regulators cut voluntary-market and assigned-risk workers' compensation rates effective January 1, 2027.

Updated on Nov. 4, 2026 in Insurance

Connecticut Approves Workers' Comp Rate Cuts

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The Connecticut Insurance Department approved a 4.9% decrease in voluntary market workers' compensation loss costs and a 5.8% decrease in assigned risk plan rates for 2027. The changes follow a filing by the National Council on Compensation Insurance (NCCI).

Why it matters

The decreases lower the cost of workers' compensation coverage for employers across the state, with cuts varying by industry class. Officials determined that overall cost levels are declining, which supported approval of the filing.

The approved voluntary market loss costs fall 4.9% overall, with manufacturing down 5.5%, contracting down 6.0%, and office and clerical down 3.6%. Assigned risk plan rates decline 5.8% overall, effective January 1, 2027.

The players

Joshua Hershman

Connecticut's Insurance Commissioner, who approved the workers' compensation rate filing.

National Council on Compensation Insurance (NCCI)

A nonprofit organization that files workers' compensation rate recommendations with state regulators on behalf of insurers.

The details

Insurance Commissioner Joshua Hershman approved the NCCI filing after a 30-day public comment period, without holding a public hearing. The maximum annual payroll for partners and sole proprietors rises from $89,200 to $92,400.

November 4, 2026: Connecticut Insurance Department announces approval of the rate decreases.
January 1, 2027: New workers' compensation rates take effect.
2023 and 2024: Policy-year loss experience used as the basis for the cost levels.
2025: Voluntary and assigned risk rates were reduced by 6.1% and 6.2%, respectively.

Season Trajectory

The 2027 cuts continue a multi-year decline in Connecticut workers' compensation costs, following reductions of 6.1% and 6.2% in 2025 and a 3.8% average voluntary decrease in 2026. The assigned risk plan's cut of 5.8% is larger than the 0.4% reduction it received in 2026.

Employers in Connecticut with workers' compensation policies should expect lower premiums beginning January 1, 2027, with the size of the reduction depending on their industry class. Sole proprietors and partners will see the maximum payroll base used for premium calculations rise to $92,400.

The takeaway

Business owners should review their workers' compensation classifications and payroll estimates ahead of the 2027 rate changes to confirm their premiums reflect the new lower loss costs.