Idaho workers’ compensation insurance rates are set to decrease by 2.5% in 2026, according to recent filings from the National Council on Compensation Insurance (NCCI).
The Idaho Department of Insurance said that the lower rates will take effect on Jan. 1, 2026, marking the ninth consecutive year of rate reductions for the state’s workers’ compensation system.
Insurers in Idaho have the option to adopt the NCCI’s rate recommendations as filed or request a review for a different rate structure. The NCCI also proposed reducing the assigned risk market surcharge from 50% to 45%, as indicated in its latest filing.
“This is another significant decrease to workers’ compensation rates,” said Dean Cameron (pictured above), director of the Idaho Department of Insurance. Cameron noted that rates have declined in 10 of the past 11 years, including nine consecutive years of decreases.
The NCCI filing attributed the ongoing rate reductions to a continued decline in the frequency of lost-time claims across all states where it provides rating services. The decline in claims frequency observed in 2024 outpaced the long-term average, suggesting improvements in workplace safety and a reduction in injuries.
Despite the drop in claim frequency, the NCCI reported that claim severity increased for both medical and wage replacement components. The filing cited inflation and higher utilization as factors in rising medical costs, while wage-replacement severity was linked to increased wages.
AM Best analysts said that the combination of fewer injuries, enhanced workplace safety cultures, and better control of medical costs through fee schedules has contributed to sustained profitability in the workers’ compensation sector.
While Idaho continues to see a steady decline in rates, the national workers’ compensation landscape is more fragmented. Some states are experiencing rising loss ratios and increased claims costs, while others report much lower numbers. This patchwork of results highlights the importance of monitoring state-level trends, as national averages may not reflect the specific conditions insurers face in each jurisdiction.
For example, California is seeing an increase in workers’ compensation rates due to higher claims utilization, medical inflation, and projections for more cumulative trauma claims. The California Department of Insurance recently approved an 8.7% increase in advisory pure premium rates for 2025, a sharp contrast to the ongoing decreases in Idaho.
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