The New York State Insurance Fund has posted answers to frequently asked questions about the upcoming assessment changes in the 3rd edition of its 2013 quarterly newsletter.
Some key points include:
- Although it seems that NYSIF's assessment advantage was coming to an end because NYSIF is now required to pay assessments to the workers' comp board like all private carriers, NYSIF states below that they will ensure that current policyholders do not pay higher assessment charges due to the change in the assessment formula for calendar years 2014 and 2015 even though their policyholders will see one assessment charge like all other private carriers.
- The other important point for brokers to keep in mind is that although as of Oct. 1, 2013, New York loss cost increases will rise by 9.5%, the new assessments will be taking place as of Jan. 1, 2014, at which time assessments are expected to decrease to somewhat offset the increase in loss costs. Nevertheless, if you have a client renewing between Oct. 1, 2013 (when new loss cost rates are taking effect) and Jan. 1, 2014, your client will see only increases until their next renewal. They will see the increase of 9.5% in loss costs and have no relief of lower assessments that will only start taking place in January 2014.
- The bottom line is that no matter when your clients are renewing, everybody knows that rates have gone up and workers' comp premiums are on the rise. Why not show your clients and prospects that you're doing everything possible to help them lower their workers' comp premiums? Partner up with Apex Services for our workers' compensation premium recovery service and maintain current clients and win new business.