For the twelfth consecutive year, the Tennessee Department of Commerce and Insurance (TDCI) has announced that the majority of businesses in Tennessee can expect a reduction in their workers’ compensation insurance costs in 2025. This announcement comes following the signing of an order by TDCI Commissioner Carter Lawrence on December 27, 2024, which authorizes a 3.6% decrease in total loss costs for the voluntary market. This adjustment will take effect on March 1, 2025, impacting both new and renewal policies.
The implications of this rate reduction are significant, as it allows insurance carriers to formulate their premiums for the upcoming year by integrating their own experience and expenses with the loss cost submissions provided by the National Council on Compensation Insurance (NCCI). Since the implementation of reforms to the state’s workers’ compensation system in 2014, employers across Tennessee have reaped substantial benefits from these ongoing reductions in loss costs. This trend underscores the positive impact of regulatory changes on the business landscape in the state.