The Latest on Workers’ Compensation and Business in Illinois
Recent reports reveal that workers’ compensation costs are sharply falling and the business climate in Illinois continues to improve. It is clear that the 2011 changes to the workers’ compensation laws in Illinois are dramatically lowering worker compensation payouts to injured workers.
- The National Council on Compensation Insurance (NCCI – an insurance industry rate making agency which provides workers’ compensation information) has issued its workers’ compensation advisory rates for 2021. It states that Illinois employers should see a 0.4 percent cut in their workers’ compensation insurance premiums – this is the eighth consecutive rate reduction that has been recommended.
- According to the 2020 Oregon Premium Rate Ranking Summary, an analysis of workers’ compensation across all of the states, Illinois has moved from 8th highest in 2016 to 24th highest in 2020. This is one of the largest drops in the country and Illinois now ranks in the middle of the pack.
- The National Academy of Social Insurance reports that Illinois had a 18.2 percent decrease in benefits paid between 2014 and 2018. This is the fourth largest decrease in the country. The large decrease is likely due to the changes in Illinois’ workers’ compensation laws that were enacted in 2011.
- Attracted by insufficient insurance regulation, there are 346 insurance companies writing workers’ compensation insurance policies in Illinois according to the Illinois Department of Insurance. Illinois is second in the country for having the most insurers writing workers’ compensation policies.
- According to the State of Illinois Economic Forecast prepared by Moody’s Analytics, the Illinois’ business climate outshines our regional rivals. Illinois offers a huge talent pool of highly skilled workers, world-class universities and top notch transportation while our business costs are lower than the national average and have been trending downward over the last few decades.
- Illinois was again ranked 6th in the nation for the best states to make a living according to the 2021 report by MoneyRates – ahead of our neighbors Missouri (13th), Wisconsin (16th), Iowa (18th) and Indiana (19th). The survey states that workplace safety is the state’s greatest strength. The rankings are based on average wages, state tax rates, cost of living, unemployment rates and low incidents of workplace injuries.
PDF Fact Sheet: The Latest on Workers Compensation and Business in Illinois