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Nevada’s 21.6% workers comp hike followed years of cuts - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Nevada’s 21.6% workers comp hike followed years of cuts by Louise Esola Workers Comp , Workers Comp Pricing Mar 4, 2026 The Nevada Division of Insurance said the state’s recently approved 21.6% workers compensation loss costs increase reflects deteriorating claims experience and follows several years of rate reductions, just as the National Council on Compensation Insurance pushed back on concerns that the change signals broader market instability The increase, effective March 1, was recommended by Boca Raton, Florida-based NCCI at 21.9% and approved at 21.6% in February. Regulators said the adjustment in loss costs — a factor that projects claims costs and serves as a benchmark for setting comp insurance rates — was necessary after data from 2021 through 2023 showed that claim frequency flattened and severity rose, particularly in the construction and leisure and hospitality sectors. “The division’s review confirmed that Nevada’s approved workers compensation loss-cost increase reflects recent claims experience — the actual number and cost of workplace injury claims filed and paid in the state,” a division spokesman said in an emailed statement. Insurers in recent years have paid out more in claims and expenses than they collected in premiums, indicating a need to restore balance, he said. In addition, wage increases have led to higher per-claim costs, the spokesman said. Workers comp is stable in other states, Donna Glenn, the NCCI’s chief actuary, said in a statement. “Nevada’s experience is unique, shaped by a combination of elevated large losses, flattening claim frequency, rising claim severity, and a payroll limitation that adds pressure on loss ratios during periods of strong wage growth,” she said The spokesman emphasized that regulators in Nevada implemented multiple loss-cost reductions between 2021 and 2024. Even with the new increase, overall loss costs remain about 4.5% below September 2020 levels, the spokesman said. The size and timing of the increase caught many market participants off guard, as approval came only weeks before the effective date, said Matt Zender, Las Vegas-based senior vice president of workers compensation strategy at AmTrust Financial Services. “You can look at the trends and see there was a need for a change,” he said. “But the timing created confusion in the marketplace.” The rate filing intersects with a major statutory change set to take effect Oct. 1 under Senate Bill 317, which will raise the state’s longstanding $36,000 payroll cap to 150% of the state average weekly wage, Mr. Zender said. Because insurers historically did not capture uncapped payroll amounts in rating data, the full impact of removing the cap is difficult to model, he said. Regulators said a separate filing is expected to reflect the payroll cap change, which is anticipated to reduce loss costs for many classifications after it takes effect. The NCCI is “actively working on a filing to reflect the upcoming increase to Nevada’s payroll cap,” Ms. Glenn said. The change “is separate from – and does not impact – the approved loss cost change in the current filing,” she said. In the meantime, Paul Zamora, San Marcos, California-based chief underwriting officer of commercial lines for ICW Group, said the industry is prioritizing “strong safety and loss control programs to help mitigate the impact of rising costs.” Related News Appeals court partially revives COVID business interruption claim March 3, 2026 Trump orders oil tanker insurance support March 3, 2026 Access to care continues to plague comp industry: panel March 3, 2026 Cyber liability market remains competitive March 3, 2026 Virginia passes bill to increase comp burial expenses March 3, 2026 Squirrel indicted in Ohio network outage March 3, 2026 Employee crime affects most large firms: Survey March 3, 2026 MGA Rokstone launches division focused on digital economy risks March 3, 2026 Axa XL names E&S casualty zonal leaders March 3, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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