Starting January 1, 2026, New Hampshire businesses will pay less for workers’ compensation insurance. The New Hampshire Insurance Department has approved an average 6.1% drop in voluntary workers’ compensation loss costs. Meanwhile, the assigned risk pool for businesses that can’t get coverage in the voluntary market will see a smaller cut of 5.4%.
This is the 14th year in a row that the state has cut workers’ compensation rates in the voluntary market, adding up to a total reduction of more than 66% over that time. The National Council on Compensation Insurance (NCCI), a key industry group, recommended the latest decrease based on recent data.
Loss costs are the part of an insurance premium that covers the cost of claims for workplace injuries. Insurance companies in New Hampshire must use these new lower loss costs when setting premiums, though they can adjust rates based on their own expenses.
Officials say this steady drop in rates shows that workplaces are becoming safer and injured workers are recovering faster. Christian Citarella, the chief property/casualty actuary for the insurance department, pointed to falling medical costs and better safety efforts across the state as reasons for the continued decline.
Insurance Commissioner DJ Bettencourt added that the workers’ compensation market in New Hampshire is benefiting everyone—from employers to employees and the broader economy.
NCCI’s analysis, based on data from 2021 to 2023, shows fewer lost-time claims in the state. Although the average cost for medical care and indemnity benefits rose recently, the overall loss ratios keep dropping because there are fewer claims overall.
On a national level, workers’ compensation looks healthy too. For 2024, the combined loss ratio was 86%, suggesting that insurers are turning a profit. This comes from fewer claims and moderate benefit costs.
Overall, the news means lower insurance costs for New Hampshire businesses, reflecting safer workplaces and more efficient handling of workers’ compensation claims.