SANTA FE, N.M. (AP) — New Mexico insurance regulators are reducing a key component in rates for workers' compensation coverage that should help employers spend less, starting next year.
The Superintendent of Insurance Office on Monday announced a 5.5% reduction in “loss costs” for insurance policies that are renewed or issued on or after Jan. 1, 2022.
Workers’ compensation is a no-fault system of insurance aimed at protecting workers and employers financially from on-the-job accidents as well as job-related illness. Insurance regulators said that compensation claims are being filed less frequently than in the past, reflecting a commitment to safety.
State Insurance Superintendent Russell Toal said businesses can expect some financial relief on insurance costs amid challenges related to the COVID-19 pandemic. Detailed rates for worker's compensation policies are set by carriers and will vary by sector.
“Lower rates will help a large number of employers save money, which they can use to reinvest in their businesses,” Toal said in a statement.