New York: Loss costs to increase 9.5 percent instead of 16.9 percent
During a recent hearing, several insurers testified in favor of the proposed increase submitted by the New York Compensation Insurance Rating Bureau. In the end, the state modified several assumptions underlying the NYCIRB's policy year experience and said the real impact on employers would be less than 3 percent.
"Specifically, the department adjusted NYCIRB's assumptions relating to Special Disability Fund reserves, PPD loss reporting and the development rate for PPD losses," the department said in its decision. "The department's analysis indicates that an increase of no more than 9.5 percent would be reasonable. A 9.5 percent increase would alleviate the impact of the cost increases identified in NYCIRB's filing, and the supporting submissions and testimony while, when combined with the anticipated 2014 New York state assessment reductions -- resulting in a further 6.7 percent decrease in policyholder costs -- limit the overall projected cost increase passed on to policyholders to approximately 2.8 percent."
The decision follows recently enacted reforms included in the state's 2013-14 budget. Among other provisions, the budget eliminates a variety of tax assessments and merges the costs into a single assessment.
The new rates take effect in October.
By Nancy Grover
Read more at the WorkersComp Forum homepage.
August 30, 2013
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