AK| The Alaska Division of Insurance Regulatory Order R 25-03 approves NCCI’s 2026 Alaska workers’ compensation filing, adopting an overall 3.7% decrease in voluntary loss costs and a 4.8% decrease in assigned risk rates, based on continuation of the previously approved ratemaking methodology with limited refinements, and after a public hearing, interrogatories, and additional supporting responses from NCCI. The Acting Director finds NCCI’s methodology appropriate, directs NCCI to better align future catastrophe/pandemic provisions with its treatment of COVID-19 losses, and orders all Alaska workers’ compensation carriers to use NCCI-approved loss costs, rating plans, rules, and classifications unless they have an approved deviation, effective November 26, 2025.
Main Points:
- The filing reflects modest overall decreases in voluntary loss costs (‑3.7%) and assigned risk rates (‑4.8%), driven by ongoing negative loss ratio trends, updated development and trend assumptions, and minor changes to assigned risk expense and LAE provisions.
- Following testimony from Alaska National Insurance Company and two rounds of Division interrogatories, the Director concludes NCCI’s methodology is acceptable but flags the need for clearer treatment of COVID‑19 and pandemic catastrophe loads in future filings.
- The order mandates uniform use of the approved NCCI loss costs and related rating elements by all workers’ compensation carriers in Alaska (subject to approved deviations), with the order effective November 26, 2025.