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The LMCIT Board of Trustees approves rate changes each year. This page provides information about premium rates for property/casualty and workers’ compensation coverages renewing in 2027. Members have expressed the need for rate stability, which the Trustees take into consideration when setting rates.
Property/casualty rates
The property/casualty program includes the following major lines of coverage: property, auto, municipal liability, and cyber. In addition, other minor, optional coverages are available such as faithful performance bond, equipment breakdown, no fault sewer backup, excess liability, and liquor liability. The following rates changes were approved by the LMCIT Board of Trustees. For the average member, the package of rate changes below will amount to a 1% average rate increase.
- 5% rate increase for auto physical damage coverage.
- 3% rate increase for municipal liability coverage.
- 3% rate increase for excess liability coverage.
- 10% rate decrease for equipment breakdown coverage.
- Flat rate change (no change) for property coverage or any other coverage lines.
Because property coverage premium is proportionally the largest share of premium for LMCIT members, the flat rate change (neither increase nor decrease) for property coverage in most cases tempers the impact of any of the other rate changes. Ultimately, the average rate change individual members will see depends on the individual member’s premium profile. For example, if a member has a higher-than-average proportion of premium consisting of property premiums, the average rate change for that member may come in at less than 1%. Conversely, if a member has a higher-than-average proportion of premium consisting of liability premiums, the average rate change for that member may come in at more than 1%.
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 members’ renewal premium.
Contact LMCIT’s underwriting staff for questions about your specific premium calculations.
Why are property/casualty rates changing?
Generally, changes to the rates for individual lines of coverage, and the modest overall/average rate increase, are the result of a combination of factors, including:
- Changes in LMCIT loss patterns and projected losses for the coming year. For example, auto physical damage loss costs have trended up because of inflationary pressure, but also due to prevalence in technology components in vehicles — what would have been a minor fender-bender 10 or 20 years ago is much more expensive to repair these days.
- Reinsurance renewal pricing.
- The extent to which LMCIT can subsize premiums with expected investment revenue.
Workers’ compensation rates
Rates for workers’ compensation will decrease by 3% for 2027.
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 changes in employee payroll and changes in experience rating also impact members’ renewal premium.
Contact LMCIT’s underwriting staff for questions about your specific premium calculations.
Why are workers’ compensation rates changing?
Generally, rates are decreasing modestly due to improved loss patterns and the extent to which LMCIT can subsize premiums with expected investment revenue.