Workers Compensation Rating Board’s Application To Increase Loss Costs Denied

New York Compensation Rating Board’s application submitted to the Department of Financial Services on May 15, 2012, to increase loss costs by an average 11.5% effective October 1st has been disapproved by State Financial Services Superintendent Benjamin Lawsky, citing that “A loss cost increase at this time – resulting in increased workers’ compensation premiums – would harm struggling businesses.”

Facing opposition from business groups and the state’s Workers Compensation Board contention that NYCIRB had overstated trends in indemnity and medical severity, Lawsky prevented the fourth increase in rates or loss costs since 2009 and maintained the status quo with regard to loss costs for the upcoming year.

As the workers compensation market continues to harden and carriers struggle to cover costs, we can expect more selectivity from insurance companies in writing workers compensation policies. With workers compensation premium recovery, you can knock down your clients' current and up to 6 prior years' mods and provide them with a better underwriting profile to enter the renewal marketplace with.