At a state advisory forum held in Phoenix last week by Boca Raton, Fla.-based NCCI, the organization said Arizona has seen a large decrease in written premium since 2007, along with an increase in total market combined ratio.

Arizona’s private insurers and SCF Arizona, the state’s largest workers comp insurer, showed a combined ratio of 132% last year, compared with 116% in 2009 and 115% in 2008.

Construction-industry losses

NCCI noted that losses in the state’s construction industry have impacted Arizona’s overall workers comp market. However, an increase in Arizona’s workers comp claim frequency was offset by a declining average cost per claim because of the recession.

Contractors would see a 6.7% average rate change under NCCI’s 2012 rate filing, while goods and services companies would see a 5.6% increase, and office and clerical firms would see a 5.4% hike, the organization said.

Manufacturers would expect to see a 3.3% hike in their rates next year.