New York rating board seeking 11.5 percent cost increase

Citing cost increases and legislative and regulatory changes, the New York Compensation Insurance Rating Board has submitted a proposed loss cost increase to the Department of Financial Services.

The 11.5 percent change represents the anticipated costs of losses and loss adjustment expenses to be incurred on policies as of Oct. 1.

"The proposed change is the result of continued adverse experience of the New York workers' compensation carriers," according to a bulletin issued by the NYCIRB. It attributed the required change to:

A slower pace of implementing certain sections of the 2007 reform that "were expected to result in significant savings."
Claim frequency, which "is no longer exhibiting a significant downward trend" as it had in the past.
Continued rise in indemnity and medical claim costs.
Increasing loss adjustment expense due mainly to "additional resources necessary for compliance with recent legislative and regulatory changes."

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Additionally, the board estimates the New York State Assessment will decrease by 2.7 percent, "resulting in an average net increase in cost to policyholders of 8.5 percent."

The DFS is required to schedule a public hearing on the filing, the board said.

Read more at the WorkersComp Forum homepage.

July 2, 2012

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