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2026 Premium Rates and Dividends

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The LMCIT Board of Trustees evaluates claim projections every year to ensure premium rates are adequate. The following provides information about premium rates going into effect for property/casualty and workers’ compensation coverages renewing on or after Jan. 1, 2026. Information about dividends can be found at the end of this page.

Property/casualty rates

Property/casualty includes coverage for property losses, bond, comprehensive municipal liability, auto, cyber-related claims, liquor liability, and much more. The following premium rate changes translate to a 2% average rate decrease for 2026. That includes:

  • 5% decrease for property, except for electric utility property, which will see a 10% rate increase for generation facilities with combustion turbine risks, and a 5% rate increase for all other electric utility property. The electric utility rate changes are intended to better align the rate with the LMCIT costs to provide coverage for electric utility risks.
  • 10% increase for auto physical damage (due to increase in loss costs trends, which tracks with the broader auto insurance industry).
  • 4% increase for excess liability.
  • No rate change for liability coverage or any other p/c coverages.

Because property coverage premium is proportionally the largest share of premium for LMCIT members, the property coverage rate decreases, in most cases, will outweigh the rate increases for auto physical damage and excess liability. Ultimately, the average rate change individual members will see depends on the individual member’s premium profile. For example, members with property premiums that make up a higher-than-average proportion of their total premium may see an average rate decrease of more than 2%, and vice versa.

Will my property/casualty premiums change by these percentages?

No. Rates are only one piece of the puzzle for premium calculations. Changes in exposure — such as property values, auto and employee counts, and annual expenditures — as well as changes in experience rating also impact your renewal premium.

Contact LMCIT’s underwriting staff for questions about your specific premium calculations.

Why are property/casualty rates changing?

Generally, the overall/average rate decrease is the result of a combination of factors:

  • Favorable reinsurance renewal pricing and structural changes.  
  • Stable loss patterns. 
  • An increase in investment revenue expectations due to changes in market conditions, as well as changes in how LMCIT’s investment portfolio is structured. 

Workers’ compensation rates

The workers’ compensation program’s financial condition is stable. Rates for workers’ compensation will decrease by 25% for 2026. That consists of rate adjustment decreases for most job classes. 

Will my workers’ compensation premiums change by these percentages?

No. Rates are only one piece of the puzzle for premium calculations. Changes in exposure such as payroll class and changes in experience rating also impact your renewal premium. Contact LMCIT’s underwriting staff for questions about your specific premium calculations.

Why are workers’ compensation rates changing?

The rate decrease is primarily possible because of decreases in projected loss rates for 2026 compared to 2025, higher investment income assumed for 2026, and a decrease to the contingency margin. (The contingency margin is an allowance in the rates if claim costs turn out to be greater than expected.)

Program dividends for property/casualty and workers’ compensation

The Trustees have decided to wait until June 2026 to make decisions about whether to return program dividends to members for the fiscal year ending in 2025. This change aligns with the Trust’s recent transition to a calendar-year fiscal schedule and allows for a more accurate assessment of financial performance across the full fiscal period. In addition, given current market uncertainty and volatility and potential changes to Federal Emergency Management Agency (FEMA) and other programs, this timing ensures the Trust can make well-informed decisions that best serve members’ long-term interests and financial stability. 

Your LMC Resource

Underwriters are available to assist with questions about coverages and more.

Connect with Underwriters
choose “Underwriting” under “Department”