Workers’ Compensation in Illinois

In 2011, at the strong request of Business and Insurance Companies a Workers’ Compensation “Reform” package was signed into law, aimed at lowering costs for employers in Illinois.  Instead, the insurance industry has pocketed enormous profits and has not passed any savings along to employers.  Any further changes in laws should instead look to promote insurance premium transparency and oversight – not further sacrifices by injured workers.

• The National Council on Compensation Insurance (NCCI – an insurance industry rate making agency which provides workers’ compensation data) has issued its workers’ compensation advisory rates for 2025.  It states that Illinois employers should see a 0.1 percent cut in their workers’ compensation insurance premiums in 2025 – this is the thirteenth consecutive rate reduction that has been recommended since the 2011 reforms were enacted.¹
• The biannual Oregon Workers’ Compensation Premium Rate Ranking Summary ranked Illinois as 13th in the nation for workers’ compensation premium costs in 2024.²
• Profits in the insurance workers’ compensation market in Illinois have significantly increased since 2011. In 2023, insurers had a 17.3 percent profit margin and made roughly $443 million in earnings.³
• Between 2018 and 2022, Illinois experienced a 11.2 percent decrease in total benefits paid, the 13th largest decrease in the country.⁴
• In 2022, employers in Illinois paid only $0.80 in workers’ compensation per $100 of covered wages. This cost has dropped nearly 22 percent since 2018.⁵
• The number of new workers’ compensation cases filed in Illinois is on a steady decline, down roughly 32 percent since 2011.⁶
• There are 364 insurance companies competing for and writing workers' compensation insurance in our state.  Illinois had the fifth most workers’ compensation insurers in 2023. Illinois is ranked seventh in the nation in direct premiums written.⁷