Hawai'i employers could see a significant decline in workers' compensation rates next year, according to the state Insurance Division.

The National Council on Compensation Insurance, which represents local workers' compensation insurers, recently requested a 16.8 percent decrease in "loss costs," which is a major cost component used by insurers in setting premiums.

Hawai'i continues to suffer some of the nation's highest workers' comp rates, but rates have dropped in recent years due in large part to new work-safety rules.

"Claim frequency has continued to drop due to the great efforts of Hawai'i's employers in providing a safer workplace for our workers," said state Insurance Commissioner J.P. Schmidt.

The filing makes it the third year in a row that Boca Raton, Fla.-based NCCI has sought a decrease. The state Insurance Division approved decreases totaling 18.2 percent for 2007 and 8.9 percent for 2006 due to declining claims.

Based in large part to the lower loss cost filings, average workers' compensation rates decreased 12.3 percent in 2007 and 18.2 percent in 2006, according to the state Insurance Division. In 2005, the rates dropped 3 percent.

Schmidt credited the state Department of Labor and Industrial Relations, local employers and labor unions in making workplaces safer and thereby reducing the number of claims.

But he said he intends to work with the state Legislature to reduce the adversarial nature of Hawai'i's workers' compensation system and improve the quality of care for injured employees.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.