Arkansas Businesses to See Reduced Workers’ Compensation Insurance Rates in 2022

March 10, 2022


CONTACT: Jennifer Bruce ( • 501.371.2600)

Arkansas Businesses to See Reduced Workers’ Compensation Insurance Rates in 2022

LITTLE ROCK, Ark. – Arkansas Insurance Commissioner Alan McClain today announced that Arkansas businesses could see another rate decrease in workers’ compensation insurance in 2022.

The Arkansas Insurance Department (AID) approved an average overall average workers compensation voluntary market loss cost level decrease of 10.8% and a drop of 11% for the assigned risk market.

The new rates—for policies renewing on or after July 1, 2022—represent a significant change from last year, which saw a 1.1% decline in the voluntary market and a 1.6% cut in the assigned risk market.

Employers purchase workers’ compensation through one of two markets, the voluntary market and the assigned risk market. In the voluntary market — the open competitive market — loss costs will decrease by an average of 10.8%, which is the primary component of workers’ compensation rates. Approximately 91% of Arkansas employers receive voluntary market coverage. In the assigned risk market — the market for employers unable to obtain coverage in the voluntary market — rates could decrease by an average of 11%. The continued rate relief in the assigned risk market is particularly good news for new businesses which are often required to obtain coverage through this market due to their lack of a claims history.

The department accepted recommendations from the National Council on Compensation Insurance (NCCI), which analyzes and recommends rate adjustments in more than forty states.

NCCI based their recommendations on premium and loss experience for policy years 2017 through 2019.

The table below shows a history of recent rate activity in Arkansas for the voluntary and assigned risk markets:

Effective Date

Loss Cost Change

Assigned Risk Rate Change
















"Arkansas's lost time claim frequency has decreased substantially since 2005," NCCI noted in its recommendations, which has contributed to the state's indemnity and medical loss ratios over this period.

“As Arkansas businesses and workers face the challenges brought on by the COVID-19 pandemic, it’s encouraging to see that workplaces continue to prioritize the safety of our valuable workforce, resulting in lower workers’ compensation rates,” said Arkansas Insurance Commissioner Alan McClain. “I commend the Arkansas business community for its work to make our workplaces safer and in turn, our state a more affordable place to do business.”

The multi-year decreases reflect the continuing efforts of Arkansas employers to maintain safe workplaces, while also having the impact of making workers’ compensation insurance more affordable to Arkansas businesses.

The rate reduction will be effective on July 1, 2022.


About the Arkansas Insurance Department:

The Arkansas Insurance Department, a division of the Arkansas Department of Commerce, was created on March 7, 1917, by an Act of the Arkansas General Assembly. For more information on the Arkansas Insurance Department, please visit, follow us on Twitter at and Facebook at