Citing increased claims frequency among other cost drivers, the New York Compensation Insurance Rating Board is seeking an 11.5% workers compensation rate increase.
On Thursday in the Rating Board's bulletin, it submitted the 11.5% loss cost rate increase request to the New York State Department of Financial Services because of “continued adverse experience of the New York workers compensation carriers.”
Indemnity and medical costs are up, and some reforms adopted in 2007 that were expected to produce significant savings have been implemented at a slow pace while an increase in weekly benefits was fully implemented, the bulletin states.
Additionally, “Claim frequency is no longer exhibiting a significant downward trend, which in the past served as an offset to increasing claim costs,” the bulletin says.
Loss adjustment expenses also are up due to legislative and regulatory changes, while a state assessment change also is expected to add to policyholder costs, the rating board said.
“The change in loss cost represents the anticipated cost of losses and loss adjustment expenses to be incurred on policies incepting on or after Oct. 1, 2012,” the bulletin continues.
The Department of Financial Services is required to hold a public hearing before ruling on the rate increase request. A time and location for that have not been set.