Hawai'i's workers' compensation insurance premiums are headed for another decline.

The National Council on Compensation Insurance, which represents local workers' compensation insurers, has agreed to a 11.6 percent decrease in "loss costs," a key expense component used by insurers in setting premiums, said Insurance Commissioner J.P. Schmidt. The agreement affects premiums set to take effect on Jan. 1.

The latest reduction brings the total decrease in workers' comp lost costs to 61.4 percent during the past four years, Schmidt said.

"This is one of the largest declines in workers' compensation insurance rates of any state in the nation, Schmidt said. "These lower rates show that the great efforts of Hawai'i employers and our employees have been effective in providing a safer workplace for our workforce."