New York: Frequency flattening factors into rate hike request
"At this point we're seeing several things," said Martin Heagen, NYCIRB vice president and actuary. "Aggregate experience [among insurance carriers] deteriorated somewhat from last year; not a lot, but somewhat."
Another major factor in the 2010 data was frequency. In most areas of the country, frequency increased in 2010, according to the latest figures from National Council on Compensation Insurance.
"We're still seeing some frequency declines in our data, but it's a lot less than it has been in the past," Heagen said. "So that's going to push up the rate level compared to previously."
Heagen said other factors attributed to higher costs include:
- Continuing increases in claims cost inflation for both indemnity and medical.
- The required increase in maximum weekly benefits.
- An increase in the hospital inpatient fee schedule.
"Basically, it's those five things," Heagen said.
If approved, the increase would take effect Oct. 1 and would follow last year's 7.7 percent rate hike.
Read more at the WorkersComp Forum homepage.
June 13, 2011
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