According to the 96th annual report released last week by the New Jersey Compensation Rating and Inspection Bureau (NJCRIB), New Jersey's residual market increased by 10.1% and the assigned-risk premiums increased by 42% in 2012.
Furthermore, rates in the New Jersey voluntary market continue to increase in 2013 as the 8.3% increase in rates and rating values kicked in January 1, 2013.
If you are a broker with accounts in the New Jersey assigned-risk pool, as long as these accounts remain in the assigned risk, prospecting brokers are calling your accounts daily to try to quote their account and take them out of the assigned risk, especially when their annual workers' comp premiums are $100,000 or more.
If you are a broker writing workers' comp in the New Jersey voluntary market, you are not immune to these risks either because prospecting brokers are searching for accounts with high experience mods and high premiums.
Brokers should consider various methods to reduce their clients' experience mods and losses. This will surely help their account have a better underwriting profile in the renewal marketplace. One such service is workers' compensation premium recovery, which is the quickest and easiest way to obtain refunds on prior years' workers' comp premiums, reduce the current year's premiums, and reduce future years' premiums as well. Obviously better safety and loss control and other such services have a major impact also, however, they may take at least a few years to make a real impact. Workers' comp premium recovery offers real results within 3-4 months.
For more information, visit us on the web at www.apexservices.com.