Delaware: Insurance department takes closer look at rate filing

A proposal to increase workers' comp loss costs by 38.3 percent in the voluntary market and 43.5 percent in the residual market rate has prompted the Delaware Insurance Department to seek additional input.

The department has scheduled a public hearing for Nov. 20 and retained two independent actuaries and an expert on rating bureau matters.

The Delaware Compensation Rating Bureau proposed the increases to take effect Dec. 1.

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The two independent actuaries that evaluated the filing each suggested lower but different rate increases. INS Consultants calculated its indicated increases at 23.5 percent for voluntary market loss costs and 28.1 percent in the residual market rate level. AIS Risk Consultants suggested more appropriate increases would be 18.1 percent in voluntary market loss costs and 22.6 percent in the residual market rate level.

If approved, the increases would be the first in several years. A decision by the Court of Chancery had mandated reductions of 6 percent in each of the filings for 2008, 2009, and 2010. Last year's filing incorporated mandated reductions of 5 percent of December 2008 rating values.

"As has been noted in prior DCRB filings, effective with this December 1, 2012 DCRB filing, no further reductions are required pertaining to the Court of Chancery decision," the filing says. "Accordingly, the proposed residual market rates, voluntary market loss costs and minimum premiums by classification submitted herewith reflect DCRB's actuarial analysis of all available experience data and other relevant factors to establish appropriate and lawful rating values for the policy period beginning December 1, 2012."

Insurance Commissioner Karen Weldin-Stewart announced three public information sessions prior to the public hearing.

Read more at the WorkersComp Forum homepage.

November 19, 2012

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