The New York Compensation Insurance Rating Board (NYCIRB), a non-governmental rate service organization, has proposed an 11.7% decrease in the overall loss cost level in New York State.
The change was proposed in its 2018 loss cost filing with the New York Department of Financial Services (DFS) and is subject to DFS review and approval. If approved, it will become effective on October 1, 2018.
The proposed decrease is based on the latest statistical data reported by the Rating Board’s member carriers and reflects the application of generally accepted actuarial principles and methodologies, according to the Rating Board’s filing.
It took into consideration factors including policy year 2016 experience, prospective claim cost, frequency and wage levels, loss adjustment expense (LAE), standard legislation and regulation, terrorism provision and provision for natural disasters and industrial catastrophes.
NYCIRB’s analyses result in an indicated manual loss cost level decrease of 12.1%, it stated in its filing. When combined with no change in the loss cost provisions for terrorism, natural disasters, and catastrophic industrial accidents, an overall decrease of 11.7% is proposed, it explained.
In July 2017, DFS approved a decrease of 4.5% in the loss cost level in New York State, effective October 1, 2017. At the time that it was proposed, New York Governor Andrew Cuomo said the premium decrease could equate to savings for New York employers of about $400 million in workers’ compensation premiums in 2017.
NYCIRB attributed last year’s 4.5% reduction in premium rates to certain cost savings measures passed as part of the 2018 budget and general system savings spearheaded by the New York State Workers’ Compensation Board.
DFS does not comment on pending rates, according to a spokesperson.