Missouri Department of Commerce and Insurance announces 2027 workers’ compensation rates for employers

JEFFERSON CITY, Mo. – Today, the Missouri Department of Commerce and Insurance (DCI) announced the release of workers’ compensation rates for employers for 2027. 

The National Council on Compensation Insurance (NCCI) has proposed rate-neutral loss costs at 0%, keeping average rates steady for Missouri businesses. The stable rate environment is driven primarily by a sustained decline in claims frequency across the state. 

“Missouri employers continue to benefit from a strong, competitive market that keeps costs stable and predictable,” DCI Director Angela Nelson said. “Steady rates reflect the ongoing commitment of Missouri businesses and employees to workplace safety. Safer workplaces mean few injuries, which helps stabilize our market and ensures workers are fully protected when accidents occur.”

The NCCI’s 2027 loss cost filing and the department’s independent actuarial review are available on DCI’s website. Proposed average changes in loss costs by industry group are shown below:

• Manufacturing: +1.2%
• Contracting: -2.0%
• Office & Clerical: -1.2%
• Goods & Services: -0.2%
• Miscellaneous: +1.3%

While claim frequency declines have helped maintain rate stability, NCCI data highlights persistent cost pressures within Missouri’s workers’ compensation system, specifically surrounding legal representation in claims. 

According to NCCI data gathered across 38 jurisdictions, attorney involvement remains significantly higher in Missouri than in neighboring states and the nation as a whole:

• Missouri: 35.2% of lost-time claims involved an attorney in 2025.
• Regional average: 26.5% among Missouri’s border states (Arkansas, Illinois, Iowa, Kansas, Kentucky, Nebraska, Oklahoma and Tennessee). 
• Countrywide average: 22.3% across 37 states and the District of Columbia. 

Increased litigation and attorney involvement add to the overall cost of claims and the time it takes to resolve them, both of which offset any gains the state may see in terms of a reduction in claims frequency.

“While workplace safety advances have made work environments safer and resulted in fewer claims, attorney involvement remains an outsized cost-driver in Missouri workers’ compensation rates,” Director Nelson said. “It is a cost-driver employers themselves cannot control, ultimately leaving Missouri at a competitive disadvantage when Missouri businesses pay more for workers' compensation.”

Workers' compensation was mandated by state law in Missouri in 1925. It is a "no-fault" insurance system that pays benefits to workers injured on the job to cover medical care, part of lost wages and permanent disability. In return, employers receive immunity from civil lawsuits by employees over such workplace injuries.

Employers fulfill their workers' compensation obligations by purchasing insurance or becoming a state-certified self-insurer. DCI reviews and approves workers' compensation insurance policy forms and rules, monitors market competitiveness, and oversees the "assigned risk pool" to ensure fair rates and quality service. The department also provides an online rate checker to assist employers with comparison shopping.

The Division of Workers' Compensation of the Missouri Department of Labor and Industrial Relations oversees the day-to-day operation of the workers’ compensation system, including problems with claims, medical fee disputes and self-insurance. For general questions and policy issues, review DCI’s Workers’ Compensation FAQs.

DCI is charged with protecting Missouri consumers through oversight of the insurance industry, banks, credit unions, utilities and various professional licensees operating in the state. For more information about the department, please visit our website at dci.mo.gov.

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