New York: Insurance officials approve increase in comp loss costs
The new rates will go into effect Oct. 1.
The NYCIRB is a nongovernmental entity that serves as the advisory rate service organization for workers' comp in New York. All workers' comp insurers must send statistics to the NYCIRB, which compiles and evaluates data before proposing loss cost changes that are subject to the insurance department's approval.
The department held a public forum to discuss the rate increase request, which is required when the rate service organization makes a filing to increase loss costs by 7 percent or more over the previous year. At the hearing, Ziv Kimmel, director of actuarial research for the NYCIRB, noted that claim frequency continues to decline in New York.
"Based on the most recent financial data, the rating board selected a frequency trend factor of minus 2.5 percent as the most appropriate and reasonable," he said. "Claim costs, however, continue to increase, with both the indicated indemnity and the medical severity trends higher than seen in previous filings."
Kimmel said the impact of workers' comp reform measures, such as medical treatment guidelines that become mandatory in October and a revised medical fee schedule for hospital inpatient services, leave for some uncertainty.
"The rating board will continue to monitor and study the reform, conduct additional surveys, and examine other possibilities to obtain data which may be helpful in reevaluating cost impacts of the reforms that may be reflected in future loss cost filings," he said.
Department officials said loss costs by classification and related rating values will be published on the agency's Web site as soon as they are available.
Read more at the WorkersComp Forum homepage.
September 16, 2010
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