Florida reforms keep the heat on WC rates.

Claims, April, 2005 by Adams, Michael H.

Florida Insurance Commissioner Kevin McCarty's move to reduce workers' compensation rates by a statewide average of 5.1 percent hardly came as a surprise. After all, with the passage of reforms in 2003, the market is showing many signs of once again becoming competitive following several years of being in a downward cycle.

Still, the market is highly sensitive to any rate changes that might upset the delicate balance between profits and losses. And while employers celebrate a welcomed reduction in premiums, those risk managers in the places where the cuts run the deepest may still find coverage elusive.

Mr. McCarty's decision to reduce rates bore out the old adage that actuarial decisions are equal parts science and art. It was just a little over a...

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